SPENDING   THE   FAMILY   INCOME 


SPENDING  THE 
FAMILY  INCOME, 


BY 

S.  AGNES  DONHAM 


!\J^ 


BOSTON 

LITTLE,  BROWN,  AND  COMPANY 
1921 


Copyright,  1921, 
BY  LITTLE,  BROWN,  AND  COMPANY. 


All  rights  reserved 
Published  October,  1921 


PBINTED  IN  THE  UNITED  STATES  OP  AMERICA 


TO  MY  PUPILS   AT  THE  GARLAND   SCHOOL  FOB 

1913-1920 

IN  WHOSE  INTEREST  I   FOUND  THE  INCENTIVE  TO 

DEVELOP  THE  MATERIAL 
THIS  BOOK  IS  AFFECTIONATELY  DEDICATED. 


494401 


PREFACE 

Years  ago  Mrs.  Ellen  H.  Richards  said,  "There 
are  to-day  many  temptations  to  spend  for  things 
attractive  in  themselves,  but  not  necessary  to  the 
effective  life."  This  is  equally  true  of  the  present 
day  and  the  purpose  of  this  book  is  to  assist  those 
who  wish  to  plan  their  spending  systematically, 
giving  each  department  of  household  or  personal 
expenditure  such  careful  consideration  that  they 
may  be  sure  they  have  resisted  the  temptation  to 
spend  for  those  things  which  are  merely  attractive 
in  themselves  without  adding  to  the  real  values  of 
life. 

It  is  not  the  size  of  the  income  so  much  as 
the  way  in  which  it  is  spent  which  determines 
whether  we  are  successfully  obtaining  those  things 
which  we  believe  to  be  most  worth  while  in  life. 
Too  many  people  live  according  to  the  conven- 
tional standards  of  their  social  set  without  con- 
sciously defining  their  own  standards,  counting 
the  cost  of  maintaining  them  and  balancing  the 
cost  with  the  return  in  "the  durable  satisfactions 
of  life." 

v 


PREFACE 

Living  by  a  carefully  made  budget  means  using 
such  intelligence  in  the  spending  of  one's  income 
that  first  the  necessities  and  then  those  desires 
which  are  most  worth  while  are  obtained. 

The  successful  budget  is  the  one  which  neglects 
none  of  the  physical  necessi  ties,  gives  none  of  them 
an  undue  portion  of  the  whole,  and  provides  maxi- 
mum amount  of  opportunity  for  the  development 
of  the  mental  and  spiritual  needs  of  life. 

Satisfaction  with  the  results  of  our  spending  will 
come  only  when  we  feel  that  a  fair  proportion  of 
our  desires  have  been  gratified.  The  quickest  way 
to  such  gratification  is  through  planning  our  spend- 
ing, keeping  our  main  purpose  always  hi  view. 

The  family  which  is  saving  for  a  home  will  spend 
for  other  things  with  greater  care  than  the  family 
without  such  a  goal.  The  child  who  is  saving  for 
a  bicycle  will  find  it  comparatively  easy  to  deny 
himself  an  ice-cream  cone.  Both  the  home  and 
the  bicycle  are  obtained  more  quickly  if  all  spend- 
ing is  done  with  the  home  or  bicycle  in  mind. 

This  book  represents  no  attempt  to  solve  indi- 
vidual problems  in  the  distribution  and  use  of  in- 
come. The  purpose  is  rather  to  state  and  discuss 
the  principles  which  should  guide  the  spending  of 
income,  whether  it  is  large  or  small.  The  author 
is  convinced  that  no  one  can  successfully  solve  the 

vi 


PREFACE 

financial  problems  of  a  home  except  the  people  who 
direct  the  spending  of  the  money  within  the  home 
itself.  Suggestions  may  be  made  which  will,  if 
applied  to  the  individual  problem,  prove  helpful, 
but  so  many  and  so  diverse  are  the  personal 
elements  which  enter  into  the  arrangement  of  life 
for  each  family  that  actual  decision  can  be  made 
only  from  the  inside. 

There  will  be  many  who  will  wonder  why  this 
or  that  division  of  household  business  has  not  been 
touched,  but  the  book  is  not  planned  to  cover  the 
business  of  the  home.  The  intention  has  been  to 
confine  the  subject  matter  to  budget  making. 

If  there  is  help  in  these  pages  for  others,  it  is  be- 
cause of  the  fact  that  the  experiences  and  opinions 
of  many  have  been  studied  and  absorbed  during 
years  of  lecturing  and  teaching.  The  source  is  not 
to  be  traced  except  by  accident,  and  if  any  fellow 
worker  recognizes  an  apparently  direct  quotation, 
apologies  are  due  to  him.  If  in  the  constant  rear- 
rangement of  notes,  quotation  marks  have  disap- 
peared it  is  a  compliment  which  it  is  hoped  is  not 
too  subtle  to  win  his  appreciation.  There  may  be 
places  where  quotations  are  made  from  Mrs.  Rich- 
ard's "Cost  of  Living  Series"  without  due  credit. 
If  so  it  is  with  pride  rather  than  apology,  for  Mrs. 
Richard's  thoughts  and  conclusions  were  so  fine, 

vii 


PREFACE 

so  clear,  so  fundamental  that  one  might  well  be 
glad  to  find  himself  incapable  of  separating  them 
from  the  woof  of  his  own  weaving. 

Many  will  ask  why  no  "standard,"  "ideal"  or 
guiding  budgets  are  given  to  serve  as  a  starting 
point.  Such  budgets  may  be  had  from  various 
sources  if  they  are  desired;  they  are  not  included 
here  because  in  the  opinion  of  the  author  they  are 
not  ideal,  they  do  not  guide,  and  they  lead  only  to 
discouragement  when  individuals  find  themselves 
unable  to  live  up  or  down  to  them.  A  recent  effort 
to  convince  herself  that  this  conclusion  was  wrong 
and  that  standards  which  were  helpful  could  be 
suggested  led  to  a  study  by  the  author  of  budget 
reports  from  fifty  cities  during  1919.  It  was  evi- 
dent that  the  expenditures  for  food  for  five  people 
from  an  income  of  $900  varied  in  these  reports  from 
34  per  cent  to  48  per  cent  of  the  whole,  the  average 
was  43  per  cent;  and  yet  at  that  time  in  Bos- 
ton 43  per  cent  of  $900  would  not  by  any  means 
provide  food  adequate  for  nourishment  for  five 
people.  The  result  of  the  publication  of  such  a 
standard  budget  would  only  be  to  convince  the 
people  in  most  of  the  fifty  cities  that  they  were 
spending  far  too  large  a  sum  on  food  while  few  who 
spent  below  the  average  would  have  discernment 

viii 


PREFACE 

enough  to  realize  that  local  conditions  must  be  re- 
sponsible for  it. 

The  individual  solution  of  the  individual  prob- 
lem, based  upon  fundamental  principles,  is  the  text 
if  there  be  one,  and  is  at  the  same  time  the  reason 
for  the  omission  of  those  standard  budgets  and 
ideal  percentages  once  so  dear  to  the  hearts  of  the 
statistical  budget  maker. 

The  book  is  not  meant  to  be  controversial  in  any 
way  and  where  opinions  differ  as  to  the  conclusions 
drawn  it  will  usually  be  because  the  qualifying  con- 
ditions have  so  far  affected  the  problem  that  the 
principle  underlying  it  has  been  forgotten  or 
ignored  either  by  the  author,  or  by  the  reader 
who  finds  that  his  experience  seems  to  contradict 
the  opinion  expressed  here. 

S.  AGNES  DONHAM 


IX 


CONTENTS 

CHAPTER  PAGE 

PREFACE v 

I.  THE  INCOME 1 

II.  CONSCIOUS  STANDARDS 8 

III.  STANDARDS  FOR  SAVING  ...... 18 

IV.  STANDARDS  FOR  SHELTER  .  .^ 31 

V.    STANDARDS  FOR  FOOD  . . ._. 38 

VI.  STANDARDS  FOR  CLOTHING        47 

VII.  STANDARDS  FOR  OPERATING  EXPENSES 60 

VIII.  STANDARDS  FOR  DEVELOPMENT 68 

IX.  DISTRIBUTION  OF  INCOME 74 

X.  HOUSEHOLD  ACCOUNTING 88 

XI.  THE  GRAPHIC  CIRCLE 99 

XII.  THE  INDIVIDUAL  INCOME 109 

XIII.  THE  CHILD'S  INCOME 120 

XIV.  STUDENT'S  INCOME 132 

XV.  THE  TIME  BUDGET 140 

XVL  LISTS  AND  INVENTORIES 148 

XVII.  QUESTIONS  FOR  DISCUSSION 156 

BIBLIOGRAPHY 168 

INDEX..  169 


Spending  the  Family 
Income 


CHAPTER  I 
THE  INCOME 

The  money  which  comes  to  the  family  regularly 
or  within  a  specified  time,  whether  as  compensation 
for  services  or  for  the  use  of  property,  is  by  the 
Government  considered  as  "  Income,"  and  when  it 
reaches  a  given  amount,  with  certain  exemptions 
defined  by  law,  it  is  taxable.  Until  the  era  of  direct 
taxation  many  men  and  women  were  without  defi- 
nite information  as  to  the  amount  of  their  incomes; 
now  it  is  necessary  not  only  to  know  the  total  but 
to  consider  its  source  in  order  to  make  the  reports 
which  the  State  and  Federal  governments  require. 

When  making  a  plan  for  spending  the  income, 
the  amount  of  the  income  taxes  may  be  subtracted 
from  the  total,  leaving  what  may  be  considered  as 
net  income  which  will  be  spent  according  to  the 
requirements  of  the  family  standards  of  living. 

If  these  standards  are  defined  in  a  family  con- 
1 


FAMILY  INCOME 


f  erence  after  full  discussion  of  all  the  points  involvec 
and  a  spending  plan  or  budget  is  made,  the  coop- 
eration of  all  the  members  of  the  family  will  b( 
much  more  positive.  1  1  is  difficult  for  individuals 
to  insist  upon  their  right  to  spend  carelessly  or  sel- 
fishly when  they  see  that  in  order  to  gratify  thei] 
whims  they  have  deprived  the  whole  group  oi 
necessities  or  of  comforts  which  would  add  materi- 
ally to  the  efficiency  of  the  family.  It  is  an  effec- 
tive check  to  selfishness  for  a  child  to  realize  thai 
his  thoughtless  wasting  of  small  sums  means  the 
loss  of  a  much  needed  convenience  or  article  oj 
clothing  for  his  mother,  that  his  carelessly  torn  suil 
can  be  replaced  only  by  the  self-denial  of  his  father 
The  first  step  to  be  taken  in  the  family-budget  con- 
ference is  the  making  of  an  accurate  inventory  oi 
all  assets  and  liabilities. 

How  Much  Does  The  Family  Own? 

Investments 
Life  Insurance 
Accounts  receivable 
Real  and  Personal  property 
Buildings  Live  stock 

Land  Cash  hi  savings  bank 

Furnishings  Cash  hi  hand 

Shares  in  cooperative  bank 
2 


THE  INCOME 

How  Much  Does  The  Family  Owe  ? 

Mortgages 

Notes 

Debts 

Compare  the  total  liabilities  with  the  total  assets. 

Is  the  family  on  a  sound  financial  basis? 

Are  the  assets  of  greater  value  than  the  liabili- 
ties? 

Are  the  liabilities  accumulating  more  rapidly 
than  assets? 

If  that  is  so,  what  is  the  reason? 

Can  the  liabilities  be  reduced  by  more  careful 
spending  of  each  year's  income? 

Would  it  be  good  business  to  reduce  the  liabili- 
ties by  sacrifice  of  some  of  the  assets? 

Are  the  liabilities  due  to  expenditures  for  con- 
structive agencies  —  a  home,  education,  working 
equipment  —  or  were  they  caused  by  a  deficit  in 
meeting  the  current  expenses  of  previous  years? 

If  due  to  deficit  in  current  expenses,  the  stand- 
ards of  living  should  be  changed  so  that  the  cur- 
rent expenses  may  be  met  by  the  current  income, 
thus  maintaining  a  standard  of  living  which  the 
income  can  support. 

The  second  step  is  to  estimate  the  income  for 
the  coming  year  and  this  will  include: 

All  salary,  interest,  dividends,  commissions, 
3 


SPENDING  THE  FAMILY  INCOME 

royalties  or  other  money  which  is  expected  to  be 
available  for  use  during  the  year. 

Estimates  of  the  market  value  of  all  food  raised 
in  the  home  garden  and  consumed  by  the  family. 

The  market  value  of  eggs,  chickens,  milk  or  meat 
raised  and  consumed  by  the  family. 

The  money  value  of  the  labor  of  the  various 
members  of  the  family  should  also  be  considered 
as  a  factor  in  reckoning  the  cost  of  service,  food, 
clothing. 

The  interest  on  the  money  invested  in  the  house 
is  a  factor  in  the  cost  of  shelter  and  should  be 
considered  when  judging  the  real  cost  of  living  in 
a  house  owned  by  the  family. 

These  additions  to  the  income  are  sometimes 
called  material  income;  they  may  not  affect  the 
apportionment  of  the  money  income,  but  they 
should  be  considered  when  comparing  the  cost, 
amount  and  quality  of  food,  clothing,  service,  shel- 
ter, etc.,  which  one  family  is  able  to  obtain  from  a 
given  income  with  the  same  purchases  which  an- 
other family  will  be  able  to  make  from  the  same 
amount  of  money. 

A  family  with  a  small  money  income  may  have 
so  large  a  material  income  that  its  problem  of  main- 
taining comfortable  standards  will  be  less  than  that 
of  another  family  whose  money  income  is  much 

4 


THE  INCOME 

greater.  The  spending  of  the  income  involves 
certain  decisions  as  to  ways  and  means,  and  these 
must  be  adjusted  by  the  family  according  to  the 
circumstances  and  the  conditions  existing  within 
the  family. 

While  the  ideal  arrangement  is  probably  a  joint 
account  with  both  husband  and  wife  free  to  draw 
upon  it  at  will,  there  are  families  where  such  a  plan 
would  be  impossible  because  of  conditions  which 
exist  and  cannot  be  ignored.  Lack  of  self-control  or 
early  training  in  the  use  of  money,  poor  judgment 
in  the  selection  of  materials  on  the  part  of  either 
man  or  woman  may  make  it  necessary  for  the  other 
to  attend  to  the  business  affairs  of  the  home;  but 
whatever  condition  of  this  sort  exists  there  should 
be  mutual  discussion  of  the  problems  involved, 
and  while  the  responsibility  of  spending  may  be 
undertaken  by  the  one  best  fitted  for  it,  the  deci- 
sion should  be  made  by  both  husband  and  wife  and 
the  children  should  understand  the  plan  adopted 
and  the  purpose  which  governs  the  spending. 

A  joint  bank  account,  a  system  of  personal  and 
household  allowances,  a  division  of  financial 
responsibility,  certain  bills  paid  by  the  husband 
and  others  paid  by  the  wife,  even  the  old  plan  of 
keeping  all  the  family  money  in  one  pocket  to  be 
doled  out  to  the  other  members  at  will  or  at  need 

5 


SPENDING  THE  FAMILY  INCOME 

are  all  methods  of  dealing  with  household  finance 
which  find  advocates  under  certain  conditions. 
The  first  decision  for  the  family  conference  to  make 
is  as  to  the  purpose  for  which  the  home  exists.  "No 
budget  can  be  determined  by  your  income  but  by 
what  you  want  your  family  to  get  out  of  that  in- 
come."1 Is  the  purpose  for  which  this  income  is 
to  be  spent  personal  satisfaction  or  service  to  the 
community?  Is  it  for  efficient  work,  for  food, 
shelter  and  other  purely  material  needs  or  for 
service,  breadth  of  vision,  enjoyment  of  the  beau- 
tiful, education  of  the  children,  mental  growth  of 
all  the  members  of  the  family  so  that  they  may 
each  have  a  share  in  making  the  world  a  better 
place  in  which  to  live? 

With  this  decision  made  it  is  easy  to  follow  it 
with  details  as  to  how  the  bills  are  to  be  paid  from 
the  money  available  and  thus  clear  the  way  for 
planning  the  budget.  Real  success  hi  the  adjust- 
ment of  this  question  comes  not  from  the  particu- 
lar method  selected  but  from  the  perfect  agree- 
ment as  to  the  desirability  of  the  method  and  the 
acknowledgment  and  constant  practice  of  equal 
partnership.  No  matter  what  form  of  detail  is 
adopted  in  spending  the  income,  the  husband  and 
wife  must  consider  themselves  equally  responsible 

1  "Household  Engineering,"  by  Mrs.  Frederick. 
6 


THE  INCOME 

for  the  result.  The  joint  bank  account  will  be 
successful  if  both  husband  and  wife  have  the  same 
ideals  and  purposes  and  the  same  business  training; 
it  will  be  likely  to  fail  otherwise.  The  household 
and  personal  allowance  system  is  desirable  when, 
with  a  common  ideal,  either  husband  or  wife  has 
less  self-control  than  the  other,  or  when  one  is  a 
"born  business  manager"  and  the  other  finds  it  im- 
possible to  master  business  details  successfully. 

When  either  husband  or  wife  proves  a  weak  part- 
ner, with  neither  intention  or  desire  to  cooperate 
in  a  spending  plan,  it  may  become  necessary,  in 
order  to  save  the  family  from  financial  disaster, 
for  the  stronger  member  to  assume  control  of  the 
income  and  insist  upon  its  careful  use.  This  con- 
dition is  happily  less  frequent  than  formerly  and 
husband  and  wife  are  now  more  often  really  part- 
ners, with  a  complete  and  frank  understanding  as 
to  purposes  and  methods,  a  division  of  responsibil- 
ity as  to  details,  and  an  equal  responsibility  for  re- 
sults. This  we  may  assume  to  be  an  ideal  con- 
dition and  it  makes  possible  a  successful  business 
partnership  which  will  lead  to  more  perfect 
spiritual  and  mental  fellowship  and  understanding 
within  the  family  group. 


CHAPTER  II 
CONSCIOUS  STANDARDS 

A  budget  is  a  plan  for  the  expenditure  of  any 
commodity  during  a  specified  time  and,  subject  to 
changed  conditions,  should  control  the  expenditure 
during  that  time.  An  income  budget  is,  then,  a 
plan  for  spending  one's  income  during  a  week,  a 
month  or  a  year. 

Having  been  made,  it  should  be  followed  as  ex- 
actly as  possible  during  the  time  for  which  it  is 
planned.  A  household  budget  is  a  plan  for  spend- 
ing the  family  income  during  a  definite  period  of 
time.  A  plan  for  a  yearly  budget  covers  seasonal 
as  well  as  regular  expenditures,  and  is  usually  more 
satisfactory  than  when  made  for  a  shorter  tune. 
When  a  household  budget  is  carefully  made,  based 
upon  past  experiences  and  well-thought-out  esti- 
mates, it  can  be  followed  if  all  the  members  of  the 
family  are  agreed  upon  its  provisions  and  nothing 
happens  to  decrease  the  purchasing  value  or  actual 
amount  of  the  income  or  to  essentially  change  the 
mode  of  living.  Increased  prices  for  commodities 

8 


CONSCIOUS  STANDARDS 

or  rent,  or  change  in  business  are  influences  any  one 
of  which  may  necessitate  revision  of  the  budget. 
The  cooperation  of  every  member  of  the  family  is 
necessary  to  success  and  it  is  imperative  that  the 
budget  be  kept  in  mind  and  used  as  a  check  upon 
purchases. 

It  is  true  that  a  budget  may  prove  to  be  a  poor 
one  and  in  the  process  of  living  better  plans  will 
present  themselves.     In  this  case,  if  the  first  bud- 
get is  reviewed  as  a  whole  and  fails  to  prove  its 
worth,  a  second  plan  may  be  substituted,  provided 
the  first  has  been  given  fair  trial  and  good  reasons 
for  every  change  are  apparent.    A  poor  budget  is 
better  than  none  at  all,  and  no  changes  of  impor- 
tance should  be  made  until  time  enough  has  elapsed 
for  the  faults  to  be  so  clear  that  remedies  suggest 
themselves.     A  budget  which  is  changed  every 
month  becomes  worthless;  the  records  prove  noth- 
ing and  at  the  end  of  the  year  there  can  be  no  defi- 
nite conclusions  which  are  of  constructive  value. 
It  has  been  said  that  no  permanent  result  ever 
comes  from  thoughts  or  impressions  unless  they 
are  expressed  by  action.     If  this  is  true,  a  budget 
planned  with  great  care,  accounting  for  the  whole 
of  the  income  and  then  laid  aside,  will  never  help 
in  the  expenditure  of  the  income,  or  bring  about 
any  improvement  in  the  living  conditions  of  the 

9 


SPENDING  THE  FAMILY  INCOME 

family.     A    budget    must    be    made    and    then 
lived. 

"Why  make  a  budget ?"  "I  know  what  I  have 
and  I  usually  spend  it  all."  "I  only  buy  what  I 
must."  "I  never  buy  anything  which  I  do  not 
need,  and  if  by  chance  anything  is  left  there  is  sure 
to  be  a  good  use  for  it."  These  and  similar  excuses 
are  made  for  unplanned  spending.  The  old  saying 
that  we  must  cut  the  garment  according  to  our 
cloth  applies  to  the  income.  We  must  make  our 
purchases  according  to  our  money.  There  is 
always  a  limit  to  the  returns  which  can  be  had  from 
a  definite  sum  of  money.  If  spent  carelessly,  some 
of  the  income  goes  for  purposes  less  useful  or  less 
desirable  than  would  be  the  case  if  the  expenditure 
had  been  planned. 

There  are  many  reasons  for  making  a  budget. 
Chief  among  them  are  these: 

The  necessities  will  be  provided,  because  con- 
sidered first. 

Purchases  will  be  made  more  wisely,  since  having 
been  planned  for,  advantage  can  be  taken  of 
seasonal  reductions  and  time  may  be  allowed  for 
finding  the  right  article. 

Purchases  will  fit  together  because  planned  to- 
gether. 

Leaks  will  be  uncovered  and  may  be  stopped. 
10 


CONSCIOUS  STANDARDS 

The  standard  of  living  will  improve  because  the 
family  life  will  be  considered  as  a  whole.  If  there 
are  extravagances  they  will  be  dropped  and  real 
values  will  take  the  place  of  careless  choice. 

More  money  will  be  saved  because  saved  regu- 
larly and  by  definite  plan. 

Saving,  planning  for  all  necessities,  choice  of 
most  worth-while  luxuries,  wise  marketing,  har- 
mony in  results,  discovery  of  leaks,  improvement 
of  standards,  recognition  of  real  values  may,  any 
or  all  of  them,  result  from  the  use  of  a  carefully 
made  budget. 

A  well-rounded  life  should  include  expenditure 
for  necessities,  saving,  giving,  spiritual  growth,  edu- 
cation, health,  play,  culture  and  social  life.  The 
family  or  individual  which  ignores  any  one  of  these 
must  inevitably  lose  some  of  the  abundance  which 
life  should  hold  in  store  for  all.  When  we  unneces- 
sarily spend  all  for  food,  clothing,  or  shelter,  and 
ignore  the  demands  of  higher  life  or  development, 
we  are  crippling  souls.  If  we  spend  all  for  art  and 
are  careless  of  the  necessities,  we  are  equally  unfor- 
tunate, for  a  crippled  body  either  reacts  upon  the 
soul  or  shortens  life  itself  and  makes  all  effort  vain. 

The  successful  business  man  knows  the  expense 
of  carrying  on  his  business.  His  costs  are  figured 
carefully  and  overhead  charges  are  worked  out  defi- 

11 


SPENDING  THE  FAMILY  INCOME 

nitely.  He  bases  his  prices,  his  purchases,  his 
methods  upon  knowledge  of  his  financial  plan,  but 
with  an  occasional  exception  he  allows  the  business 
of  spending  his  personal  income  to  go  on  without 
thought  of  planning,  without  even  classification  of 
expenditures,  with  no  positive  knowledge  of  what 
effect  any  one  purchase  may  have  upon  the  whole. 
The  individual  or  the  family  spending  a  comforta- 
ble income  without  a  plan,  must,  if  suddenly  con- 
fronted by  facts,  often  acknowledge  that  too  much 
is  being  spent  for  clothing,  or  that  their  food  is 
elaborate  and  choice  at  the  expense  of  comfort  in 
operating  or  the  simplest  expenditures  for  culture, 
health  or  play. 

Planned  expenditure  should  lead  to  better  round- 
v  ed  family  or  individual  life,  with  due  consideration 
given  to  food,  clothing,  shelter  and  operating,  but 
with  an  equal  measure  of  thought  and  effort  placed 
upon  service  to  others,  religious  and  civic  activities, 
mental  and  spiritual  growth,  health,  social  life  and 
play.  The  development  of  a  one-sided  family  is 
as  much  to  be  avoided  as  that  of  a  one-sided  man  or 
woman.  The  budget  maker  who  plans  only  for 
material  things  is  like  a  woman  who  works  all  day 
in  the  kitchen,  forgetting  that  the  rest  of  her  house 
should  be  put  in  order.  A  plan  for  life  should  in- 
clude the  spiritual,  mental  and  social,  as  well  as 

12 


CONSCIOUS  STANDARDS 

material;  this  provision  for  spiritual,  mental  and 
social  development  involves  expenditure  of  money 
just  as  surely  as  does  the  purchase  of  food  or 
clothing,  and  if  nothing  is  to  be  neglected  or 
crowded  out,  a  spending  plan  must  be  made 
to  cover  all  of  these  demands. 

No  one  plan  will  suit  every  family.  Each  family 
must  make  its  budget  in  accordance  with  its  in- 
come, environment  and  standards  of  living.  The 
heedless  purchase  rarely  indicates  a  consciousness 
of  values,  while  planned  expenditure  is  based  upon 
definite  standards  which  the  very  act  of  planning 
has  made  conscious. 

Few  people  know  exactly  what  their  standards 
of  living  are.  Challenged  by  the  question  and 
given  time  to  formulate  them,  most  men  and 
women  would  be  able  to  express  their  standards 
vaguely.  /One  reason  for  the  difficulty  which  many 
families  have  in  making  ends  meet  is  the  fact  that 
they  have  never  made  definite  choices,  but  have 
drifted  from  one  expenditure  to  another,  suddenly 
finding  themselves  without  money  to  purchase  what 
seem  to  them  absolute  necessities,  and  obliged  to  go 
into  debt  to  satisfy  their  needs.  Making  a  spend- 
ing plan  involves  a  conscious  choice  between  ex- 
penditures and  should  disclose  to  the  family  its  fail- 
ure or  success  in  estimating  values.^ 

13 


SPENDING  THE  FAMILY  INCOME 

For  convenience,  let  us  consider  all  incomes  as 
classified  under  four  heads, —  existence,  living, 
comfort,  luxury. 

An  Existence  income  is  so  small  that  it  provides 
only  enough  food,  clothing  and  shelter  to  keep  the 
family  alive  and  protected  from  the  elements. 

A  Living  income  will  provide  more  and  better 
food,  clothing  and  shelter, —  enough  to  keep  the 
family  alive  and  able  to  work.  This  will  mean: 

Food  adequate  for  nourishment,  but  with  little 
choice; 

Clothing  sufficient  for  cleanliness,  of  durable 
quality; 

Shelter,  safe,  with  possibilities  of  sanitation; 

Operating  necessary  to  life  (heat,  light  and 
water) ; 

A  surplus,  which  permits  small  savings  and  some 
recreation. 

The  Comfort  income  is  large  enough  to  give: 

Food  adequate  for  nourishment,  with  some  possi- 
bilities of  choice; 

Clothing  suitable  for  the  work  which  has  to  be 
done,  comfortable  for  the  climate  in  which  the 
family  lives,  with  opportunity  for  choice  and  beau- 
ty; but  carefully  selected  after  definite  planning 
and  with  constant  care  to  make  every  purchase 
count. 

14 


CONSCIOUS  STANDARDS 

Shelter,  safe  physically  amd  morally,  sanitary, 
with  some  privacy  for  individuals  and  a  degree  of 
comfort  for  all,  but  without  reckless  expenditure 
for  location  or  size. 

Operating  consistent  with  the  expenditure  for 
food,  shelter  and  clothing.  A  comfort  income  will 
not  allow  heedless  or  extravagant  operating. 
Every  detail  will  require  careful  supervision  and 
restraint. 

Surplus  for  saving  and  well  being, —  that  is,  for 
those  things  which  tend  to  develop  the  spiritual, 
mental,  physical  and  social  sides  of  family  life. 

The  Luxury  income  will  purchase : 

More/ood,  with  greater  delicacies; 

More  clothing,  of  finer  fabrics,  more  decorative 
and  with  more  frequent  changes; 

Better  shelter,  with  greater  privacy,  beauty  and 
comfort  in  appointments; 

Operating  expense  consistent  with  the  expendi- 
tures for  food,  clothing  and  shelter;  increased  ser- 
vice and  consequently  freedom  from  small,  pinch- 
ing economies; 

Surplus  for  larger  savings  and  greater  develop- 
ment of  spiritual  and  mental  life  through  possibili- 
ties of  travel,  education  and  society,  according  to 
individual  choice. 

It  is  impossible  to  set  the  limits  in  amount  which 
15 


SPENDING  THE  FAMILY     INCOME 

divide  any  two  of  these  classes  of  income.  Because 
of  education,  heredity,  environment,  occupation 
and  number  in  the  family,  what  might  be  a  luxury 
income  for  one  family  would  be  a  comfort  income 
for  another,  and  equally  a  comfort  income  for  one 
family  would  provide  only  living  conditions  for 
another.  Each  family  must  look  its  standards  of 
living  squarely  in  the  face  and  decide  honestly 
whether  it  is  harboring  luxury  standards  on  a  com- 
fort income,  or  comfort  standards  on  a  living 
income.  If  its  standards  have  been  at  fault,  they 
should  be  reduced  until  they  are  within  the 
limits  of  the  income. 

It  is,  then,  wise  to  ask  very  seriously  what  the 
family  standards  are  for  Shelter,  Food,  Clothing, 
Operating,  and  for  Development,  —  mental,  physi- 
cal, social  and  spiritual. 

If  this  is  done  in  the  family  group,  and  the  analy- 
sis put  into  writing,  there  are  likely  to  be  various 
inconsistencies  apparent,  and  discussion  should 
result  in  clearing  the  way  for  more  constructive 
planning  than  would  be  possible  without  such  a 
definite  statement  of  standards.  If  the  object  in 
making  a  budget  is  first  to  save  more  money,  and 
second  to  get  a  better  return  for  the  money  ex- 
pended, the  first  step  in  the  budget  making  should 
be  to  discover  what  has  previously  prevented  sav- 

16 


CONSCIOUS  STANDARDS 

ing,  and  the  next  what  return  has  come  from  the 
spending;  and  the  result  of  such  study  should  be  a 
readjustment  that  will  eliminate  the  expenditures 
which  have  failed  to  produce  adequate  returns. 


17 


CHAPTER  III 
STANDARDS  FOR  SAVING 

When  the  savage,  dependent  upon  the  fruits  of 
each  day's  hunting,  discovered  that  days  came 
when  he  found  no  food,  he  increased  his  efforts 
sufficiently  so  that  on  good  days  he  killed  a  little 
more  than  he  ate  and  put  away  the  extra  for  the 
days  when  fresh  supply  failed.  Since  that  time 
many  systems  of  saving  for  the  proverbial  rainy 
day  or  sunny  opportunity  have  been  developed, 
and  they  have  all  been  based  upon  the  simple  plan 
of  the  savage, —  to  produce  a  little  more  than  he 
consumed  and  preserve  the  surplus;  but  even  with 
the  long  centuries  of  experience  behind  us,  com- 
paratively few  people  to-day  are  saving  construct- 
ively. 

The  need  for  protection  in  case  of  emergency  - 
illness,  death,  nonemployment,  loss  of  earning 
power  —  the  desire  for  home  ownership,  a  business, 
a  farm,  new  equipment  or  furnishings,  education, 
travel,  the  wish  for  power  or  social  position  in  the 
community  are  incentives  which  lead  to  saving. 
In  a  comparatively  small  number  of  cases  these 

18 


STANDARDS  FOR  SAVING 

savings  are  made  according  to  a  well-defined  plan 
with  the  purpose  of  obtaining  within  a  definite 
period  of  time  a  certain  result  in  total  amount 
saved  and  in  return  of  income  or  purchasing  power. 
Until  a  short  time  ago,  most  men  have  felt  that 
whether  they  saved  or  not  was  a  matter  which  con- 
cerned themselves  alone,  so  long  as  they  did  not 
become  public  charges;  but  recently  it  has  been 
apparent  that  not  only  is  it  a  civic  duty  to  try  to 
save  enough  so  that  during  old  age,  illness  or  other 
emergency  the  family  will  not  be  dependent  upon 
the  community,  but  that  the  welfare  of  the  indus- 
trial world  is  largely  dependent  upon  the  savings 
of  individuals.  The  small  savings  of  many  people 
combined  and  invested  by  the  banks  make  possible 
the  development  of  industry  and  the  natural  re- 
sources of  the  country.  It  is  well  to  realize  then 
that  money  which  is  saved  and  invested  not  only 
accumulates  purchasing  power  for  its  owner  but 
provides  the  means  for  increasing  our  national 
welfare.  A  good  citizen  will  save  as  a  civic  duty, 
after  he  has  provided  the  necessities  of  life  in  suffi- 
cient amount  so  that  he  and  his  family  can  do 
efficient  work. 

Families  living  upon  an  income  received  from 
securities  frequently  spend  it  all,  feeling  that  if 
they  have  not  encroached  upon  their  principal  they 

19 


SPENDING  THE  FAMILY  INCOME 

are  quite  safe.  Indeed,  one  of  the  expressions 
most  frequently  used  to  describe  a  luxury  income 
is,  "  He  doesn't  begin  to  spend  his  income."  Asa 
matter  of  fact,  most  people  who  have  spent  the 
whole  of  their  income  from  securities  during  recent 
years  have  found  that  same  income  greatly  reduced 
of  late,  owing  to  the  shrinkage  in  values,  suspended 
dividends  and  the  reduced  purchasing  power  of 
the  dollar.  It  has  been  pretty  definitely  shown 
that  if  the  total  value  of  the  income  is  to  be  main- 
tained, a  considerable  portion  of  it  should  be  rein- 
vested each  year.1 

Ten  per  cent  of  the  income  is  often  given  as  the 
amount  which  should  be  saved  and  many  people 
follow  that  rule  without  regard  to  conditions.  To 
say  that  ten  per  cent  of  a  family  income  must  be 
saved  is  to  apply  a  specific  rule  to  a  special  problem 
in  an  arbitrary  fashion  which  might  result  disas- 
trously. If  ten  per  cent  can  be  saved  without 
reducing  the  efficiency  or  health  of  the  members  of 
the  family,  then  ten  per  cent  makes  a  very  good 
starting  point  for  a  saving  plan.  When  people  are 
young  it  is  often  possible  for  them  to  save  more 
than  ten  per  cent  and  to  do  so  means  greater  returns 
and  less  strain  later  in  life.  Application  of  the  ten 
per  cent  rule  tends  to  make  a  family  satisfied  with 

1  Cromwell's  "The  American  Business  Woman",  pages  2-9. 
20 


STANDARDS  FOR  SAVING 

saving.  Study  of  future  needs  and  a  plan  for  sav- 
ing which  will  meet  those  needs  provides  an  incent- 
ive which  often  results  in  putting  away  more  than 
ten  per  cent,  because  the  family  is  working  toward 
a  goal  instead  of  following  an  arbitrary  rule 
without  any  of  the  zest  of  accomplishment. 

To  say  that  an  individual  should  be  satisfied 
with  saving  ten  per  cent  or  even  fifteen  per  cent  is 
as  foolish,  for  many  people  who  are  without  family 
cares  can  easily  save  as  much  as  thirty-three  per 
cent  or  fifty  per  cent  without  reducing  efficiency  or 
comfort;  and  to  save  is,  as  has  been  shown,  a  civic 
as  well  as  a  personal  duty.  On  the  other  hand, 
there  are  families  and  individuals  who  have  such 
legitimate  demands  upon  their  incomes  that  to 
save  as  much  as  ten  per  cent  is  impossible  if  daily 
life  is  to  be  sufficiently  comfortable  to  enable  them 
to  do  good  work  in  the  world.  No  one  should  save 
at  the  expense  of  health  or  decent  living,  and  busi- 
ness equipment  must  be  provided  if  the  income  is 
to  continue,  but  a  distinction  should  be  made  be- 
tween well-being  and  luxury;  to  refrain  from 
saving  in  order  to  purchase  luxuries  is  as  wrong 
as  to  save  according  to  a  rule  and  allow  the  health 
to  suffer  until  the  income  is  reduced  as  a  natural 
result. 

An  arbitrary  application  of  the  ten  per  cent  rule 
21 


SPENDING  THE  FAMILY  INCOME 

might  easily  prevent  the  family  living  upon  an  in- 
come derived  from  securities  from  becoming 
conscious  of  the  need  to  save  and  reinvest  a  much 
larger  percentage  of  their  annual  income  if  they 
wish  to  maintain  its  standard  of  purchasing  power. 
For  several  years  insurance  companies  have  used 
as  advertising  material  the  very  suggestive  charts 
given  below.  Whether  these  statements  are  based 
upon  authentic  figures  or  not  I  do  not  know, 
but  my  own  observation  leads  me  to  believe  that 
they  contain  more  than  a  grain  of  truth. 

This  indicates  100  men,  representing  an  average 
group  of  Americans  starting  out  in  life 


At  age  35  of 
these  men 
5  have  died 
10  are  wealthy 
10  are  well-to-do 

At  age  45  of 
these  men 
16  have  died 
1  is  wealthy 
3  are  well-to-do 

At  age  55  of 
these  men 
20  have  died 
1  is  wealthy 
3  are  well-to-do 

40  live  on  their  earn-  65  live  on  their  earn-  46  live  on  their  earn- 
ings ings  ings 

35  show  no  improve-  15  are  no  longer  self-  30  are  not  self-sup- 

ment  supporting  porting 

At  age  65  of  At  age  75  of  Estates  at  Death 

these  men  these  men  of  100  men 

36  have  died  63  have  died  1  leaves  wealth 
1  is  wealthy                1  is  wealthy                 2  leave  comfort 

4  are  well-to-do          2  are  well-to-do  15  leave  from  $2,000 

5  live  on  their  earn-  34  are  dependent  to  $10,000 

ings  82  leave  nothing 
54  are  not  self-sup- 
porting 

22 


STANDARDS  FOR  SAVING 

Financial  Condition  of  100  Widows 

18  live  on  their  incomes 

47  supplement  incomes  by  working 

35  are  dependent 

Saving  by  a  plan  which  will  result  in  building  an 
income  for  the  future  must  avert  a  large  part  of  the 
disaster  indicated  by  these  charts,  and  even  where 
it  is  manifestly  impossible  to  create  an  estate  which 
will  yield  the  standard  of  comfort  and  well-being 
maintained  during  the  productive  years,  it  is  evi- 
dent that  an  income  which  will  prevent  entire  de- 
pendence would  be  a  tremendous  gain  over  the  con- 
dition which  now  exists. 

Men  and  women  have  insured  their  lives  in  favor 
of  their  dependents  but  in  most  cases  without  mak- 
ing a  careful  study  of  the  probable  needs  of  these 
dependents  and  provision  for  an  income  adequate 
to  ensure  their  comparative  comfort. 

The  family  with  a  comfort  income,  in  making  a 
saving  plan,  should  consider  not  only  the  amount 
of  insurance  which  it  is  desirable  to  carry,  but  the 
way  in  which  it  shall  be  paid  to  the  family  in  order 
to  provide  the  maximum  amount  of  comfort  and 
safety  during  the  years  when  the  children  must  be 
supported.  Such  a  saving  plan  should  also  include 
provision  for  an  emergency  fund  readily  accessible 
and  sufficient  for  probable  needs;  and  a  third  fund 

23 


SPENDING  THE  FAMILY  INCOME 


for  special  purposes,  like  the  purchase  of  a  house  or 
education  for  the  children,  etc. 

What  income  do  you  wish  to  leave  your  fam- 
ily? To  accumulate  an  estate  requires  careful 
planning  with  a  definite  goal  in  mind  and  the  reali- 
zation that  the  result  is  dependent  upon  the 
amount  of  the  annual  savings. 

Statistics  show  that  a  healthy  man  may  expect 
to  live  the  number  of  years  and  attain  to  the  age 
shown  in  the  following  table: 

TABLE  I.  — LIFE  EXPECTANCY  OF  HEALTHY 
INDIVIDUALS  OF  VARIOUS  YEARS  OF  AGE 


Age  at  Last  Birthday 

Age  likely  to  be  Attained 

Years  of  Expectancy 

15 

60 

45 

20 
25 

8 

42 
39 

30 

65 

35 

35 

67 

32 

40 

68 

28 

45 

70 

25 

50 

71 

21 

.     55 

72 

17 

60 

74 

14 

65 

76 

11 

70 

78 

8 

24 


STANDARDS  FOR  SAVING 


TABLE  H,  —  COMPOUND  INTEREST  TABLE.     ONE 
HUNDRED  DOLLAR  PRINCIPAL 

The  sum  to  which  $100  principal  will  increase  at  interest 
compounded  annually  in  one  to  five  decades  at  5%,  6%,  7%, 
8%,  and  10%  per  annum. 


Rate  per  An- 
num at  which 

Amount  of  Accumulation  at  Year  Designated 

Compounded 

10. 

20 

30 

40 

50 

5 

$163 

$265 

$  432 

$  704 

$  1147 

6 

179 

321 

574 

1029 

1842 

7 

197 

387 

761 

1497 

2945 

8 

216 

466 

1006 

2172 

4690 

10 

259 

673 

1745 

4525 

11738 

TABLE  m.  —  COMPOUND  INTEREST  TABLE. 
HUNDRED  DOLLARS  PER  ANNUM 


ONE 


The  sum  to  which  $100  per  annum,  paid  at  the  beginning  of 
each  year,  will  increase  at  compound  interest,  in  one  to  five 
decades  at  6%  and  8%  per  annum. 


Rate  per  An- 
num at  which 
Compounded 


Amount  of  Accumulation  at  Year  Designated 


10 

20 

30 

40 

50 

6 

8 

$1397 
1464 

$3899 

4942 

$  8390 
12234 

$16415 

27978 

$30810 
61967 

Note  some  of  the  following  results  of  a  few  years 
of  consistent  accumulation  of  estate: 

$100,000 $162  a  year  compounded  at  8%  for  50  years 

$100,000. . .  .$817  a  year  compounded  at  8%  for  30  years 

50,000 $305  a  year  compounded  at  6%  for  40  years 

25 


SPENDING  THE  FAMILY  INCOME 

From  these  tables  it  is  evident  that  the  amount 
of  annual  savings  and  the  regularity  with  which 
these  savings  are  made  are  two  of  the  vital  factors 
in  accumulating  an" estate;  the  third  factor  is  the 
safety  of  the  investments  chosen,  and  the  fourth 
the  amount  of  interest  which  is  received  on  the  in- 
vestments. 

The  earlier  in  life  one  begins  to  save  the  more 
surely  is  the  desired  result  obtained,  and  the  strain 
upon  the  income  and  daily  sacrifice  of  one's  desire 
for  luxury  is  much  less  when  the  saving  is  distribu- 
ted over  a  large  number  of  years  than  is  possible 
if  the  necessity  for  saving  only  presents  itself  after 
the  enthusiasm  of  youth  is  gone. 

It  is  well  in  making  a  plan  for  constructive  sav- 
ing to  allow  for  the  fact  that  there  will  be  times 
when  it  is  impossible  to  save  and  to  set  the  goal  as 
high  as  possible  in  order  not  to  fail  to  attain  a  good 
average.  "  How  much  should  we  save?"  should  be 
answered  by  the  counter  question,  "Why  are  you 
saving?"  If  the  answer  is  for  emergency,  then  you 
must  define  the  emergency  for  which  you  wish  to 
provide  —  illness  or  non-employment  —  and  the 
general  opinion  of  business  men  seems  to  be  that 
for  incomes  below  $2,000  the  equivalent  of  one 
year's  income  in  the  savings  bank  is  necessary  if  an 


26 


STANDARDS  FOR  SAVING 

individual  or  a  family  are  to  be  able  to  cope  success- 
fully with  emergencies. 

If  the  savings  are  to  be  made  toward  the  pur- 
chase of  a  house,  the  location,  size  and  type  of 
house  must  be  defined;  the  cost  of  the  lot  must 
be  considered,  and  the  saver  must  estimate  the 
total  sum  required  to  pay  for  the  house;  ascer- 
tain how  much  cash  he  must  have  in  hand  before 
beginning  to  build  or  purchase  and  upon  what 
terms  he  can  arrange  to  pay  the  balance  of  the 
money.  The  advantages  offered  by  the  purchase 
of  cooperative  bank  shares,  the  possibility  of 
borrowing  from  a  savings  bank,  the  various  op- 
portunities for  second  mortgages  all  enter  into 
consideration  of  this  problem  in  constructive 
saving.  With  such  an  estimate  the  amount  which 
must  be  saved  each  year  will  be  evident,  and  sav- 
ing can  be  planned  which  will  accomplish  the  de- 
sired result  within  a  definite  period  of  time. 

When  the  savings  are  to  be  invested  in  the 
education  of  the  children  the  same  general  method 
of  estimate  is  necessary.  When  shall  we  wish  to 
use  the  money?  How  much  probably  will  be 
necessary?  How  much  must  be  saved  each  year 
in  order  to  provide  this  amount  by  the  tune  the 
children  are  ready  for  college?  How  can  we  be 
sure  that  we  shall  have  enough  money  at  the 

27 


SPENDING  THE  FAMILY  INCOME 

proper  time?  How  should  this  saving  be  made 
if  it  is  to  be  done  with  the  least  strain  upon  our 
income?  A  savings  bank  account,  cooperative 
bank  shares  or  endowment  insurance  are  all  of 
them  of  great  assistance  in  saving  for  an  object 
which  is  to  be  purchased  in  the  more  or  less  defi- 
nite future. 

It  is  impossible  to  determine  in  advance  the  pre- 
cise sum  which  would  be  necessary  if  one  were  to  be 
ready  to  take  advantage  of  a  business  opportunity, 
but  the  person  who  saves  with  the  idea  of  accu- 
mulating a  bank  account  equal  to  a  year's  salary 
will,  when  his  goal  is  reached,  be  able  to  continue 
his  saving  on  the  same  basis,  keeping  the  second 
fund  for  emergencies  and  thus  being  in  a  position 
to  invest  the  first  fund  when  good  opportunity 
presents  itself. 

If  the  reason  for  saving  is  to  provide  an  income 
for  one's  old  age,  the  plan  might  include  en- 
dowment insurance  as  well  as  a  carefully  devel- 
oped scheme  of  investment. 

When  the  income  to  be  provided  is  for  the  benefit 
of  one's  heirs,  straight  life  insurance  and  reliable 
securities  may  be  considered  a  good  basis  for  the 
plan. 

The  individual  dependent  upon  his  earnings 
looks  forward  to  the  time  when  he  can  no  longer 

28 


STANDARDS  FOR  SAVING 

earn  and  must  obtain  support  from  his  savings  or 
be  dependent  upon  other  people.  Such  a  condition 
can  be  avoided  only  if  provision  is  made  for  an  in- 
come which  will  continue  after  earning  ceases. 
Constructive  saving  makes  a  continuous  income 
possible  and  if  the  savings  are  made  with  that 
purpose  in  mind,  the  income  will  be  more  likely 
to  be  sufficient  to  meet  the  needs  than  is  the 
case  when  there  has  been  no  constructive  plan 
for  ensuring  such  an  income. 

Bolton  Hall  says  that  "  Life  is  not  made  for  sav- 
ing, but  savings  are  made  that  life  may  be  more 
abundant."  Whether  savings  insure  more  abund- 
ant life  to  the  individual,  to  his  family  or  to  the 
community  does  not  affect  the  truth  of  this  state- 
ment. When  savings  are  made  and  hoarded  in  a 
stocking  they  accumulate  little,  either  in  purchas- 
ing power  or  in  possibilities  for  abundant  life,  but 
when  the  same  money  is  put  to  work  for  the  pro- 
duction of  useful  things  which  will  add  to  the  good 
of  the  whole  people,  life  has  indeed  been  made  more 
abundant  for  all.  Unless  we  save  and  use  for  con- 
structive purposes  as  much  money  as  we  are  spend- 
ing for  mere  luxuries  we  are  not  planning  our  ex- 
penditures on  a  stable  basis. 

To  spend  first  and  then  save  is  equally  bad  in 
policy.  Those  who  save  successfully  and  regu- 

29 


SPENDING  THE  FAMILY  INCOME 

larly  do  so  because  they  plan  carefully,  fix  the 
amount  they  wish  to  save  and  save  that  amount 
before  spending,  then  forget  they  have  had  the 
money  and  spend  as  if  the  remainder  were  all  that 
had  ever  been  available. 


30 


CHAPTER  IV 
STANDARDS  FOR  SHELTER 

The  smallest  income  must  provide  some  sort  of 
shelter  and  the  poorest  shelter  must  have  a  roof, 
walls  and  a  floor.  The  first  increase  in  the  amount 
of  income  available  for  shelter  will  usually  be 
spent  for  possibilities  of  cleanliness,  sanitary  con- 
veniences, and  a  degree  of  privacy  for  individuals. 
Further  increases  will  be  used  for  added  com- 
fort, and  later  for  better  location  and  appear- 
ance, with  recognition  of  the  desirability  of  living 
where  opportunities  for  social,  religious  and 
educational  connections  are  possible. 

Certain  decisions  must  be  made  before  formulat- 
ing standards  for  shelter.  One  must  choose  be- 
tween city,  suburban,  town  or  country  life.  If  a 
family  lives  in  the  country,  it  is  desirous  of  space 
sufficient  for  privacy;  if  in  a  town,  for  a  yard;  if  in 
a  city,  for  a  backyard;  if  in  an  apartment,  space 
for  air  and  sun.  The  amount  of  privacy  possible 
for  individuals  is  determined  by  the  size  of  the  in- 
come, the  number  in  the  family  and  the  houses 

31 


SPENDING  THE  FAMILY  INCOME 

available  for  rent  in  the  community.  The  ques- 
tion of  location  is  important.  Convenient  prox- 
imity to  business,  church,  schools,  social  center 
and  railway  must  be  considered.  Are  there  indi- 
viduals in  the  family  whose  condition  of  health 
or  strength  necessitates  especial  care  in  choice  of 
climate,  location  or  arrangement  of  rooms?  Must 
social  advantages  be  sacrificed  for  comfort,  or 
comfort  and  convenience  be  relinquished  for  busi- 
ness reasons?  Does  the  family  own  property 
which  does  not  meet  its  demands?  Can  changes 
be  made  so  that  it  will  be  suitable,  or  shall  it  be 
rented  and  something  hired  which  is  satisfactory? 
Standards  of  living  determine  the  size  of  the 
house  and  whether  it  is  to  be  hired  or  owned. 
Will  a  single  or  a  double  house  or  an  apartment 
best  meet  the  need?  The  advantages  of  an  apart- 
ment are  low  operating  costs,  heat,  water,  service 
and  a  minimum  amount  of  care.  Some  of  the 
advantages  of  living  in  a  house  are  greater  pri- 
vacy for  individuals,  more  freedom  of  movement, 
greater  space,  stronger  sense  of  permanency. 
The  question  of  buying  or  renting  must  be 
answered  by  the  individual  after  studying  his  own 
problem.  TQ  own  one's  house  develops  home 
feeling,  removes  temptation  to  change  carelessly, 
develops  civic  pride  and  concern  and  gratifies  a 

32 


STANDARDS  FOR  SHELTER 

desire  for  ownership.  On  the  other  hand  it  is 
often  impossible  in  large  cities,  and  the  cost  of 
ownership  in  the  suburbs  is  increasing.  Owner- 
ship entails  responsibilities  and  sometimes  makes 
a  change  of  location  for  business  purposes  diffi- 
cult. The  decision  must  be  made  after  thorough 
study  and  weighing  of  the  conditions  surrounding 
the  individual.  The  child  growing  up  hi  "our 
own  house"  has  memories,  associations,  habits 
and  development  very  different  from  those  of 
the  child  who  has  moved  from  house  to  house. 
The  better  citizen  is  probably  developed  from 
the  child  who  has  a  sense  of  permanence  in  a 
locality. 

Having  decided  upon  the  location,  type  of  house, 
ownership  or  rental,  other  questions  present  them- 
selves. 

Shall  you  require  one,  two  or  more  bathrooms 
or  none?  How  many  sleeping  rooms  will  be  nec- 
essary? Will  one  living  room  be  sufficient? 
How  many  rooms  must  be  provided  for  service? 
Shall  the  living  room  serve  as  nursery,  or  must 
there  be  an  extra  room?  Do  you  insist  upon  a 
serving  pantry,  or  will  a  china  closet  answer  your 
purpose.  What  about  gas,  electricity,  hot  water 
and  heating  plant?  If  these  are  not  already 
installed,  what  will  be  the  cost  of  obtaining  them? 

33 


SPENDING  THE  FAMILY  INCOME 

How  many  closets  must  there  be?  What  are 
your  requirements  for  cellar,  storeroom,  lawn, 
garden? 

The  essentials  in  shelter  for  any  size  income  are 
those  which  make  life  safe,  physically,  mentally 
and  morally.  Air,  space,  light,  water,  sanitation, 
good  drainage,  good  cellar;  clean  streets,  walks 
and  gutters;  honest,  clean-minded  neighbors,  the 
absence  of  a  rough  element  and  immoral  conditions 
are  essentials.  The  family  hiring  or  purchasing  a 
house  should  consider  the  surroundings  very  care- 
fully, especially  if  the  selling  price  or  rental  asked 
is  smaller  than  might  be  expected.  If  the  neigh- 
borhood is  running  down,  the  cause  for  the  low 
price  may  become  a  menace  either  to  health  or  to 
the  morals  of  the  family.  When  choosing  a 
house,  either  for  rent  or  ownership,  the  cost 
of  maintenance  should  be  a  factor  in  the  decision. 
If  it  is  an  old  house  out  of  repair,  the  cost  of  put- 
ting it  into  condition  may  be  prohibitive.  Cheap 
construction,  poor  location  or  plan  may  cause 
difficulty  in  heating  it,  so  that  the  cost  of  operating 
is  excessive. 

The  cost  of  shelter  includes  business  and  regular 
school  carfares  as  well  as  rent.  It  .is  frequently 
possible  to  avoid  having  to  pay  carfare  if,  in  choos- 
ing, the  demands  of  the  individual  family  in  regard 

34 


STANDARDS  FOR  SHELTER 

to  business,  church,  schools,  social  life  and  train 
service  are  considered.  If  the  house  is  owned, 
injgrestjm_;yie_m  taxes,  repairs  and 

upkeep,  depreciation,  fire  insurance  and  business 
carfares  constitute  the  actual  cost  of  shelter;  but 
to  add  the  estimate  of  interest  on  the  money  in- 
vested to  the  income  and  then  to  the  cost  of  shel- 
ter, when  no  money  is  actually  involved,  compli- 
cates the  household  accounts,  and  it  is  simpler 
to  include  in  the  budget  only  the  interest  on  a 
mortgage  when  there  is  one. 

The  wise  house  owner  will  set  aside  a  house 
fund  in  which  he  will  deposit  each  month  the 
amount  of  money  he  would  pay  for  rent  if  he 
hired  the  house.  A  separate  bank  account  makes 
it  less  likely  that  this  money  will  be  borrowed  for 
other  purposes.  He  will  thus  have  a  sinking  fund 
from  which  to  pay  taxes,  insurance  and  interest 
when  they  are  due,  and  will  be  able  to  make 
desirable  repairs  when  they  are  needed,  beside 
having  a  surplus  which  will  accumulate  either  to 
enlarge  and  improve  the  house,  or  to  use  for 
investment  later.  Intelligent  standards  in  shelter 
will  result  in  the  choice  of  a  location  and  house 
which  are  safe  physically,  mentally  and  morally, 
the  appearance  of  which  belittles  rather  than 
exaggerates  the  size  of  the  income.  To  spend 

35 


SPENDING  THE  FAMILY  INCOME 

below  the  possible  (limit  for  shelter  is  far  more 
desirable  than  to  lower  the  standards  for  devel- 
opment and  food.  Society's  guide  to  one's 
standards  should  be  based  upon  the  expendi- 
tures for  development,  rather  than  upon  a  false 
impression  gained  from  an  excessive  amount  spent 
for  shelter.  When  the  cost  of  shelter  alone  is  in 
excess  of  a  sum  which  is  reasonable,  the  allotment 
for  food  or  for  development  is  reduced.  This  is  not 
a  desirable  distribution,  and  except  with  a  very 
small  income  should  never  occur.  In  case  the 
rent  includes  heat  and  water  and  some  service, 
as  in  an  apartment,  the  excess  which  is  due  to 
the  cost  of  heat  and  water  reduces  operating  costs 
and  is  legitimate. 

While  it  is  never  wise  to  say  positively  that  any 
arbitrary  amount  is  invariably  safe  or  unsafe  for  a 
family  to  spend  for  shelter,  results  in  working  out  a 
large  number  of  budgets  have  shown  conclusively 
that  if  the  cost  of  rent  or  ownership  exceeds  one- 
fifth  of  the  net  income  (after  savings  and  income 
tax  have  been  subtracted)  the  family  is  likely  to 
have  difficulty  in  paying  comfortable  operating  ex- 
penses, is  decidedly  cramped  in  expenditures  for 
development,  or  is  not  saving  a  reasonable  sum. 
Stated  as  a  rule,  one  might  say  that  under  ordinary 
conditions  a  family  living  on  a  comfortable  income 

36 


STANDARDS  FOR  SHELTER 

should  pay  one-fifth  or  less  for  rent  or  ownership, 
that  one-tenth  of  the  cost  of  a  house  must  be  set 
aside  each  year  to  pay  for  rent  (as  taxes,  insur- 
ance, repairs,  depreciation  and  interest)  and  that 
unless  an  increase  in  income  is  to  be  expected 
almost  immediately,  a  family  is  not  justified  in 
investing  more  than  twice  its  annual  income  m 
the  purchase  or  building  of  a  house. 

The  budget  maker  should  be  able  to  tell  from  a 
frank  statement  of  his  standards  whether  he  has 
been  demanding  luxury  in  shelter  from  an  income 
only  large  enough  to  warrant  comfort,  or  comfort 
when  the  size  of  the  income  indicates  only  "living" 
standards.  If  the  cost  of  the  shelter  provided  is 
too  high  for  the  income,  other  standards  must 
suffer  and  one  will  be  in  the  position  of  a  shop- 
keeper who  places  all  his  stock  in  the  window, 
leaving  nothing  to  sell  from  the  shelves. 


37 


CHAPTER  V 
STANDARDS  FOR  FOOD 

Food  is  provided  for  the  primary  purpose  of 
nourishing  the  body,  but  good  food,  attractively 
served,  may  be  assimilated  better  by  a  given 
individual  than  the  same  food  poorly  cooked  and 
carelessly  served.  Therefore,  in  addition  to  pro- 
viding food  for  health  and  efficiency,  there  should 
be  a  return  in  enjoyment.  Training  in  good  food 
habits  is  helpful.  Thought  should  be  given  to 
the  value  of  food  in  the  body  rather  than  to  the 
pleasure  of  the  palate;  the  tendency  will  then  be 
toward  enjoyment  because  of  delicate  seasoning, 
good  cooking  and  attractive  serving,  rather  than 
because  of  rare  flavors,  out  of  season  delicacies 
and  complicated  processes  of  cookery. 

Food  standards  for  a  family  may  be  in  accord 
with  other  expenditures,  but  the  meals  should  be 
planned  with  dietetic  rules  well  in  mind.  Good 
food,  well  cooked,  attractively  served,  without  too 
frequent  repetition  and  without  undue  cost  for 
material  and  preparation,  or  excessive  waste 
either  in  purchase,  care,  preparation  or  serving 

38 


STANDARDS  FOR  FOOD 

should  be  the  standard  for  any  income.  Simplic- 
ity of  choice  is  desirable,  as  it  provides  necessary 
nutrients  at  less  expense.  Simplicity  in  prepara- 
tion saves  time,  and  the  result  is  food  which  has 
retained  its  natural  flavors  and  is  more  easily 
digested.  Simplicity  in  serving  saves  paid  ser- 
vice, or  the  strength  of  the  housekeeper,  and 
tends  toward  a  more  comfortable  attitude  of  mind 
if  the  family  is  suddenly  deprived  of  the  usual 
amount  of  formal  service. 

Good  economics  may  not  justify  eating  at  home 
but  the  home  table  is  justified  by  other  returns 
than  the  economic.  The  freedom  from  publicity 
makes  possible  the  training  of  children  in  self-con- 
trol and  regard  for  others.  Adults  and  children  be- 
come responsible  for  pleasant  speech,  interest  in 
the  affairs  of  the  family  and  discussion  of  questions 
of  moment.  The  returns  for  the  money  invested 
in  home  life  are  not  expressed  in  dollars  and  cents, 
but  in  terms  of  flesh  and  blood,  comfort  and  health, 
family  interest  and  enjoyment,  efficiency  and  com- 
munity interest.  At  present  the  aesthetic  value  of 
the  family  table  seems  sufficient  to  warrant  the  ex- 
pense necessary  to  maintain  it,  but  that  value  may 
be  lost  entirely  in  individual  cases  if  care  is  not  used. 
The  common  dining  room,  with  its  lack  of  privacy 
and  loss  of  individuality,  can  be  maintained  at  less 

39 


SPENDING  THE  FAMILY  INCOME 

expense  than  the  home  table.  Less  duplication  of 
effort  and  waste  of  time  with  greater  freedom  from 
care  are  the  advantages  which  the  community  din- 
ing room  offers,  but  until  it  can  also  give  to  the 
members  of  the  family  equal  satisfaction,  pleasure 
and  training  in  the  fundamentals  of  fine  family 
relationships,  it  wilTbe  worth  while  to  continue  the 
serving  of  food  to  family  groups  in  separate  dining 
rooms  at  any  possible  cost  in  money. 

The  cost  of  food  includes  the  cost  of  production, 
distribution,  preparation,  serving  and  disposal  of 
waste.  Cost  of  production  means  the  cost  of  seed, 
rent  or  interest  on  the  ground  used,  labor,  machin- 
ery, waste  from  weather  or  disease  and  loss  in 
harvesting.  Distribution  includes  the  cost  of  trans- 
portation, packing,  handling,  wrapping  and  deliv- 
ery, while  the  cost  of  preparation  and  serving 
is  the  cost  of  service,  heat,  loss  in  preparation 
and  serving  and  waste  in  digestion.  The  house- 
keeper who  is  definitely  planning  her  food  stand- 
ards must  study  the  value  of  foods  to  the  body. 
Her  questions  should  be,  "Can  I  afford  to  buy? 
Can  I  afford  not  to  buy?"  "Is  this  food  neces- 
sary to  maintain  or  increase  the  efficiency  of  the 
family?"  "Does  its  usefulness  warrant  its  cost?" 
To  answer  these  requires  a  knowledge  of  the 
purpose  for  which  she  intends  to  use  the  food  and 

40 


STANDARDS  FOR  FOOD 

its  suitability  for  the  purpose.  " Would  a  cheaper 
substitute  give  as  good  results?"  Foods  may  be 
valuable  for  variety,  concentration,  succulence, 
bulk,  color,  crispness  or  flavor  as  well  as  for  the 
nutriment  they  contain.  The  money  spent  for  a 
bunch  of  radishes  in  the  late  winter  may  give  little 
return  so  far  as  the  nutriment  is  concerned,  but 
the  value  of  the  crispness  and  color  is  great,  when 
an  otherwise  dull  menu  has  been  brightened 
sufficiently  to  make  it  interesting  for  every  one. 

Consideration  of  food  values  and  of  the  waste  in 
preparation  and  serving,  definite  standards  for  serv- 
ice, the  number  of  courses  demanded,  the  fre- 
quency with  which  the  same  dishes  may  be  served, 
the  use  of  left-overs  and  out-of-season  foods  all 
influence  the  cost  of  food  for  a  family.  Butter, 
meat,  eggs,  fish  and  cheese,  fresh  fruits,  cream 
and  out-of-season  vegetables  are  the  most  expen- 
sive foods.  Self-denial  practised  in  their  use,  the 
serving  of  less  expensive  substitutes  for  the  more 
costly  foods  and  simple  desserts  instead  of  rich 
"made"  dishes  all  tend  to  reduce  food  costs.  One 
has  always  to  remember  that  with  protein  dishes, 
especially  of  meat,  those  which  cook  quickly  are 
the  most  expensive  cuts  and  the  iriore  costly  des- 
serts are  frequently  those  which  require  elaborate 
preparation. 

41 


SPENDING  THE  FAMILY  INCOME 

Each  housekeeper  must  decide  for  herself,  after 
due  consideration  of  all  conditions,  whether  she 
shall  cook  at  home,  or  purchase  cooked  food; 
whether  she  shall  bake  her  own  bread,  or  use  a  bak- 
er's product.  It  may  be  that  extra  costs  are  more 
than  balanced  by  the  difference  in  the  amount  of 
service  or  strength  required.  The  housekeeper,  in 
making  a  statement  of  her  food  standards,  must  de- 
cide whether  she  will  serve  simple  or  elaborate 
breakfasts,  with  fresh  fruit,  cream  and  hearty  dish; 
midday  or  evening  dinner  with  one,  two  or  three 
courses,  choice  or  less  expensive  meats,  two  or 
three  vegetables,  native  or  out-of-season  vegeta- 
bles or  fruits,  rich  or  simple  desserts.  Made  dishes, 
the  use  of  left-overs,  the  absence  or  addition  of 
soups  and  salads  all  add  to  or  subtract  from  the  ex- 
pense and  at  the  same  tune  affect  the  work  of 
preparation. 

It  is  well  to  begin  with  the  minimum  amount  of 
money  for  which  adequate  food  can  be  provided. 
The  number  in  the  family,  age,  occupation  and 
health  of  the  individuals  must  all  be  considered. 
Decide  first  what  foods  are  necessary  for  the  health 
of  the  family.  Estimate  the  cost  of  these  foods 
for  a  week.  If  the  total  is  more  than  should  be 
spent  for  food,  consider  whether  less  expensive  sub- 
stitutes with  the  same  food  value  can  be  used  in 

42 


STANDARDS  FOR  FOOD 

place  of  some  of  the  more  costly  articles  on  the 
list.  If  the  foods  necessary  to  health  do  not  use 
all  of  the  money  available,  additions  may  be  made 
which  will  give  greater  interest  and  attractiveness 
to  the  diet.  The  minimum  cost  of  adequate  food 
varies  with  the  locality,  the  number  of  children  or 
old  people  in  the  family  and  the  changing  market 
conditions.  At  the  present  time  it  is  close  to  fifty 
cents  a  day  per  person.  Five  years  ago  it  was  near  to 
thirty  cents,  and  ten  years  ago  was  from  twenty- two 
to  twenty-five  cents,  depending  upon  the  locality. 

There  are  various  rules  for  the  apportionment 
among  the  different  groups  of  food.  Of  every  dol- 
lar, spend  for 

Meat,  eggs  and  fish 20  cents,  or  less 

Milk  (1  pint  to  each  child, 

£  quart  to  each  adult) 20  cents,  or  more 

Cereals  and  bread 20  cents,  or  more 

Vegetables  and  fruit 20  cents,more  or  less 

Fats,  sugar  and  other  groceries.  .20  cents,  or  less 

$1.00 

Another  plan  for  spending  a  minimum  food  allow- 
ance is  to  use  milk  as  the  basis:  one-third  of  a 
quart  to  each  adult;  one  pint  for  each  child. 2 

1  Bureau  of  Home  Economics,  Department  of  Agriculture. 
Thrift  leaflet  No.  15. 

2  It  should  be  noted  that  this  is  the  minimum  amount  of  milk 
—  one  quart  for  each  child  and  one  pint  for  each  adult  is  a  safer 
amount. 

43 


SPENDING  THE  FAMILY  INCOME 

No  meat,  eggs  and  fish  until  the  full  amount  of 
milk  has  been  purchased,  and  then  not  more  than 
one-fifth  of  the  total  food  allowance. 

Fruit  and  vegetables,  for  each  person  as  much 
as  has  been  spent  for  meat. 

Fats,  2  ounces  for  each  adult;  one  and  one  half 
to  two  ounces  for  each  child. 

Cereals  and  bread,  from  one-fifth  to  two-fifths 
of  the  total  food  allowance. 

Sugar  and  other  sweets,  two  and  one-half  ounces 
for  each  person. 

Doctor  Graham  Lusk  has  said  that  no  family  of 
five  should  purchase  meat  until  they  have  first 
purchased  three  quarts  of  milk. 

It  is  evident  that  when  the  food  allowance  is 
small,  great  care  must  be  used  if  adequate  food  is 
to  be  provided.  When  there  is  more  than  a  mini- 
mum food  allowance,  the  diet  may  be  more  varied 
and  will  be  more  interesting.  The  danger  which 
the  budget  maker  must  guard  against  is  the  ten- 
dency to  increase  the  expenditures  for  food  with 
every  addition  to  the  income,  frequently  beyond 
the  amount  consistent  with  that  spent  for  develop- 
ment. 

The  results  desired  are  first:  health  and  power 
to  work;  second :  enjoyment  which  is  keen  and  yet 
not  so  consuming  as  to  make  one  lose  sight  of  the 

44 


STANDARDS  FOR  FOOD 

first  requirement.  Simplicity  in  the  choice  of 
foods  makes  possible  greater  expenditure  for  de- 
velopment and  greater  comfort  in  operating,  with 
less  need  for  paid  service.  Those  families  which 
live  on  the  minimum  amount  of  food  necessary  for 
nourishment  must  eat  to  live,  not  live  to  eat,  must 
have  appetites  made  keen  by  work  or  exercise  and 
have  the  incentive  of  great  need,  or  of  intense  de- 
sire to  accomplish  something  else  with  their  money. 
It  takes  less  money  per  person  to  provide  food  for  a 
large  family  than  for  a  small  one,  but  whether  the 
family  is  large  or  small,  the  success  of  the  expendi- 
ture for  food  is  indicated  by  the  resulting  health 
and  ability  to  work. 

The  businesslike  homemaker  will  wish  to  handle 
food  problems  in  a  businesslike  way  and  will  plan 
what  she  can  spend,  will  know  how  much 
nourishment  she  should  provide  and  will  endeavor 
to  make  the  money,  nourishment,  gratification  of 
appetite  and  tastes  correspond;  in  other  words, 
will  make  a  food  budget.  In  making  a  food 
budget  for  a  family,  the  housekeeper  may  plan 
first  the  separate  meals,  taking  care  that  she 
considers  food  value,  individual  tastes,  variety, 
material  on  hand  and  costs  (in  the  market,  of 
preparation  and  of  waste);  then  make  out  a 
grocery  order,  and  if  she  has  the  necessary 

45 


SPENDING  THE  FAMILY  INCOME 

knowledge  she  will  find  it  an  exciting  game  to  work 
the  whole  out  in  calories.  She  will  then  know 
whether  she  is  furnishing  the  proper  amount  of 
each  group  of  foods.  This  plan  is  possible  only 
when  the  income  warrants  a  food  budget  without 
great  restriction  as  to  cost.  When  the  income  is 
small,  it  is  safer  to  start  with  the  number  of 
calories  necessary  for  a  week's  meals  and  plan 
a  grocery  order  of  staple  foods  with  that  cal- 
oric value.  Give  heed  to  the  proportion  of  milk, 
meat  and  vegetables,  substitute  cheaper  materi- 
als of  the  same  food  value  in  order  to  reduce  ex- 
penses, but  always  take  great  care  to  keep  the 
necessary  amount  of  milk,  leafy  vegetables  and 
fruit.  She  can  then  separate  the  totals  into  meals, 
planning  different  and  attractive  ways  of  serving 
to  prevent  repetition.  Such  food  budgets  will 
give  better  food  with  greater  variety  at  less  cost 
than  when  the  plans  are  made  from  day  to  day. 


46 


CHAPTER  VI 
STANDARDS  FOR  CLOTHING 

Clothing  should  serve  to  protect  the  body  from 
heat  and  cold,  to  satisfy  one's  own  sense  of  the 
beautiful,  and  to  gratify  the  eyes  of  one's  friends. 
Protection  is  the  first  object,  gratification  the 
second  and  this  order  should  be  kept  in  mind 
when  choosing.  Carelessness  in  the  selection  of 
clothing  is  inexcusable  with  any  income  and  a 
tragedy  with  a  moderate  income.  Certain  fabrics 
are  admittedly  beyond  our  means,  others  are 
possible  in  limited  quantities,  others  less  expen- 
sive or  more  durable  must  be  used  frequently. 
Quality  and  quantity  should  be  studied,  and  the 
occupation,  social  life  and  special  needs  of  the 
individuals  taken  into  consideration. 

The  business  of  the  family;  the  social  standing 
of  the  parents;  the  school  affiliations  of  the  child- 
ren; the  clothes  worn  by  their  associates;  the  abil- 
ity of  the  mother  to  sew ;  country  or  city  life;  the 
way  the  summers  are  spent;  the  opportunity  to 
pass  on  clothes  out-grown  to  the  next  in  size;  all 
must  influence  the  making  of  a  clothes  budget.^ 

47 


SPENDING  THE  FAMILY  INCOME 

The  cost  of  clothing  includes  the  original  price, 
the  cost  of  care  and  of  articles  necessary  to  wear 
with  it.  One  should  be  very  sure  that  each  article 
purchased  is  needed,  is  suitable  in  style,  material 
and  quality  for  the  purpose  for  which  it  is  intended, 
is  as  beautiful  as  can  be  afforded  and  will  wear  long 
enough  to  warrant  its  purchase.  It  must  not  only 
stand  usage,  but  it  should  be  of  such  color,  style 
and  material  that  the  person  who  must  wear  it  will 
not  tire  of  it  before  it  is  worn  out.  For  this  reason 
extreme  fashion,  unbecoming  styles,  colors  and 
trimmings  should  be  avoided,  as  well  as  material 
unsuitable  for  the  purposes  for  which  the  garment 
is  to  be  used.  The  wardrobe  is  much  more  suc- 
cessful if  it  has  been  considered  as  a  whole.  If  each 
article  purchased  is  chosen  because  it  agrees  in 
color,  style  and  quality  with  other  articles  already 
on  hand,  the  whole  clothing  outfit  will  be  more 
suitable,  more  beautiful  and  more  durable  in  satis- 
faction. 

The  quality  of  undergarments  should  be  con- 
sistent with  that  of  the  outer  garments  worn  and 
always  in  accord  with  the  purpose  which  they  are 
to  serve.  Camp  life,  business  life,  social  life  each 
demand  different  fabrics,  and  what  is  suitable  for 
one  kind  of  life  is  frequently  absolutely  unsuitable 
for  another.  While  it  is  possible  that  one  person 

48 


STANDARDS  FOR  CLOTHING 

might  use  several  kinds  of  materials,  it  is  as  unde- 
sirable that  the  business  girl  or  woman  should  wear 
to  business  fabrics  suitable  only  for  social  functions 
as  it  is  that  the  business  man  should  wear  corduroy 
hunting  clothes  to  the  office.  Silk  lingerie  is  not 
consistent  with  knitted  shirts  from  the  five  and  ten- 
cent  store,  nor  should  silk  stockings  be  permissible 
with  patched  or  coarse  underwear.  Honest  stand- 
ards in  clothing  require  consideration  of  fitness  and 
consistency  in  the  combination  and  use  of  fabrics. 
A  chart  like  the  following  will  prove  of  use  in 
formulating  clothing  standards.  A  great  difficulty 
with  most  of  us  is  that  we  have  standards  of  which 
we  are  not  clearly  conscious,  and  because  we  do  not 
recognize  them  as  standards,  we  frequently  make 
purchases  which  are  not  consistent.  Our  clothing 
in  consequence  is  inadequate  and  unsatisfactory. 
While  the  details  given  on  the  chart  are  not  new,  a 
study  of  them  does  insure  decisions  which  compel 
us  to  think  and  make  conscious  choice. 


49 


SPENDING  THE  FAMILY  INCOME 


Materials 


Making 


Style 


MY  STANDARDS  ARE 

silk 

wool 

cotton 

weave 

texture 

suitability  for 

climate 

health 

work 

social  life 
quality 

coarse 

fine 

superfine 
colors 

fast  or  fade  easily 

for  effect 

suited  to  the  individual 

homemade 

machine 

hand  work 
ready-made 
custom-made 

seamstress 

dressmaker 

tailor 

"  modiste" 
remade 

for  owner 

for  other  members  of  family 

latest  fad 
new  each  season 

conservative  —  good  as  long  as  it  lasts 
finish  and  line 
quality  of  material 
50 


STANDARDS  FOR  CLOTHING 


Replacement 


hand  or  machine-made 
j  durable  or  fragile 

Trimmings      \  q^ei  in  color  or  design 
conspicuous 

when  styles  change 

when  tired  of  the  garment 

when  worn  out 

when  half  worn 

when  outgrown 

when  it  will  give  better  service  to  some 

one  else 
when  no  longer  in  active  service 

shaking  and  airing  cotton  or  linen 

brushing  and  airing  wool  materials 

removal  of  spots 

hanging  or  folding 
Clothing  covering  in  closets 

Care  1  cleansing  and  redyeing 

mending  and  darning 

sponging  and  pressing 

summer  storage 

winter  storage 

use  of  shoe-trees 

airing,  cleaning  and  polishing  shoes 

straightening  heels 
Shoe  resoling 

Care  half  soles 

whole  soles 

stitching  rips 

relining  heels 

To  make  a  clothing  budget,  list  all  the  articles  of 
clothing  worn  under  four  heads :  Inner  clothing, 
Outer  clothing,  Street  clothing,  Accessories.1 

1  See  charte,  pages  56-59. 
51 


SPENDING  THE  FAMILY  INCOME 

This  list  should  not  be  burdened  with  articles  never 
worn  by  the  person  making  the  budget  but  should 
include  everything  which  is  hi  the  wardrobe.  In 
the  first  column  write  the  number  of  each  which 
would  be  necessary  for  use  during  a  year,  in  the 
second  column  the  number  already  on  hand  which 
will|not  need  to  be  replaced  during  the  year.  This 
requires  care  and  judgment  as  to  durability.  For 
example,  if  twelve  pah*  of  stockings  are  normally 
purchased  each  year  and  six  good  pair  are  on  hand, 
it  means  that  before  the  year  is  over  the  inventory 
shows  that  six  pair  of  stockings  must  be  purchased. 
If,  on  the  other  hand,  three  of  the  six  pair  are  al- 
ready nearly  worn  out,  they  should  not  be  consid- 
ered in  the  budget,  and  nine  pair  should  be  entered 
in  the  column  marked  "  Number  to  purchase." 
In  the  third  column  write  the  average  cost  of 
the  articles  on  hand.  In  the  fourth  column, 
the  number  which  must  be  purchased  in  order  to 
keep  up  the  standard  of  the  first  column.  In  the 
next  column,  put  the  amount  which  it  seems  wise 
to  plan  to  spend  in  buying  the  articles  found  to  be 
necessary.  This  amount  will  be  affected  by 
changes  in -price  since  the  last  purchases.  The 
last  two  columns  are  to  be  used  later  for  the 
record  of  what  is  actually  spent  and  the  difference 
between  that  and  what  it  is  planned  to  spend. 

52 


STANDARDS  FOR  CLOTHING 

When  all  estimates  are  made,  add  the  amounts 
in  the  fifth  column  and  compare  the  total 
with  the  amount  of  the  income  which  has  been  al- 
lowed for  clothing.  If  the  total  of  the  fifth  column 
exceeds  the  total  of  the  original  plan,  one  must  go 
over  the  list  and  reduce  it,  eliminating  the  articles 
which  were  not  really  needed.  If  it  is  still  impossi- 
ble to  make  the  two  totals  come  together,  one  must 
either  reduce  the  quality  of  some  of  the  articles/or 
again  reduce  the  quantity.  To  make  a  successful 
clothing  budget,  one  must  be  willing  to  face  facts 
and  plan  with  the  limitations  of  the  income  as  well 
as  one's  desires  in  mind. 

Do  not  try  to  buy  everything  that  the  budget 
calls  for  at  once,  but  as  articles  are  discovered  in 
the  market  which  satisfy  and  which  have  been 
planned  for,  take  advantage  of  it,  jotting  down  the 
amount  spent  in  the  next  to  the  last  column,  and 
the  amount  saved  or  exceeded  in  the  last  column. 
If  an  unexpected  need  appears,  it  may  prove  that 
enough  has  been  saved  on  some  other  things  to 
make  its  purchase  possible.  If  not,  it  is  neces- 
sary to  give  up  some  definite  thing  in  order  to 
provide  for  the  emergency. 

A  better  clothing  budget  will  result  if  the  whole 
year  is  planned  for  at  one  time.  Then,  if  condi- 
tions change,  the  budget  can  be  altered  to  meet  the 

53 


SPENDING  THE  FAMILY  INCOME 

new  conditions  by  making  deliberate  choices,  giv- 
ing up  one  thing  in  order  to  get  something  else.  It 
is  obviously  impossible  to  tell  in  the  fall  exactly 
what  the  summer  needs  will  be;  but  if  the  clothing 
allowance  is  limited,  it  is  just  as  obvious  that  the 
money  available  for  spring  and  summer  clothing 
will  be  what  is  left  after  the  winter  needs  have  been 
met.  If,  during  the  fall  and  winter,  money  is  spent 
without  regard  to  the  rest  of  the  year,  the  next 
season  is  sure  to  be  a  lean  one,  or  the  clothing  ap- 
propriation will  be  overrun.  It  is  far  better  to  plan 
on  expenditures  for  a  normal,  average  year  than  it 
is  to  refuse  to  plan  because  the  coming  season  may 
differ  in  its  demands  from  the  usual.  If  the  ab- 
normal demands  come,  the  money  can  be  spent  to 
the  best  advantage  at  the  time,  and  there  is  sure  to 
be  more  available  than  there  would  have  been  if  no 
plan  had  been  made.] 

With  the  budget  made  out  for  the  year,rit  be- 
comes a  matter  of  course  to  buy  when  it  suits  the 
money  supply,  or  when  one  sees  a  thing  he  wants  at 
the  price  which  he  has  planned  to  pay.  The  ob- 
jection may  be  made  that  it  is  impossible  to  tell 
what  it  will  be  necessary  to  pay  for  a  garment  a 
whole  year  ahead.  That  is  true,  but  one  knows 
what  he  is  in  the  habit  of  paying,  and  if,  when  the 
time  comes,  he  finds  that  the  thing  planned  for 

54 


STANDARDS  FOR  CLOTHES 

cannot  be  obtained  at  the  price  he  planned  to  pay, 
he  will  then  be  obliged  to  accept  a  poorer  quality, 
or  give  up  something  else  in  order  to  keep  to 
the  standard  which  he  has  always  had. 

Such  a  survey  of  the  wardrobe  and  plan  for  re- 
plenishing will  show  when  there  are  more  articles 
on  hand  than  are  needed,  prevent  needless  buying, 
and  almost  invariably  result  in  including  in  the 
wardrobe  various  articles  which  have  always  been 
wished  for  but  which  it  has  seemed  unwise  to  afford 
to  purchase.     The  following  lists  may  include  ar- 
ticles unnecessary  to  many  people;  if  so,  they  can 
be  ignored.     The  figures  in  the  lists  indicate  the 
way  in  which  the  different  columns  are  to  be  used. 
When  articles  are  not  purchased  every  year  and 
do  not  conveniently  alternate  with  some  other  ar- 
ticle of  about  equal  value  —  for  example,  a  fur  coat 
or  an  evening  wrap  —  it  is  well  to  set  aside  a  sum 
each  year  as  a  sinking  fund  to  replace  the  garment 
when  desirable.     If  a  fur  coat  will  presumably  last 
five  years,  one-fifth  of  its  value  should  be  placed  in 
the  sinking  fund  each  year.    Jewelry  which  is  to  be 
purchased  by  the  wearer  might    alternate   with 
other  large  and  infrequent  expenditures  like  that 
for  furs. 


55 


Clothing  Budget  (Woman) 


Number 
required 

Number 
on  hand 

Average 
cost 

Number 
to  purchase 

Amount 
to  spend 

Amount 
spent 

Amount 
different 

UNDERWEAR  
Union  suits                 . 

Undervests  
Corsets 

Brassieres 

4 

Camisoles 

^ 

Chemises 

/ 

Bloomers 

ft 

Stockings,  silk  
cotton  
woolen  
Nightdresses 

I* 

6 

4 

$2  00 

2 

|4  50 

$4  25 

$  251  — 

Negligees 

Bathrobe 

Skirts,  cotton  
silk 

OUTER  CLOTHING.. 
Dresses,  street  

house  

business  

afternoon  
summer 

evening  

Skirts  wash 

silk  

lingerie 

street  shoes  

2 

1 

$7.50 

1 

$7.50 

$8.00 

$.501-f 

sport  shoes  

gaiters  

rubbers  

2 

$1.00 

2 

$2.00 

overshoes  
STREET  CLOTHING 
Suits,  spring  
summer     

winter 

winter  (dress)... 

56 


11 
II 

Number 
on  hand 

h 

< 

Number 
to  purchase 

Amount 
to  spend 

Amount 
spent 

I  «§ 
^3 

automobile  
evening  
sport  
sweater  .... 

rain  

Hate,  spring  

summer  
winter  

sport 

ACCESSORIES  

Belts    . 

Neckwear 

Gloves  

Veils  

Handkerchiefs  

j 

i  The  $.25  saved  from  the  nightdress  was  used  for  the  street  shoes  and  $.25 
more  must  be  saved  from  some  other  purchase. 

Clothing  Budget  (Man) 


UNDERWEAR  
Union  suits  
Undervests 

Drawers 

Athletic  

Pajamas  

Nightshirts  
Bathrobe  
Socks,  cotton  

6 

4 

$1.75 

2 

$3.50 

$3.00 

$.501- 

silk      . 

wool 

Bathing  suit  
OUTER  CLOTHING.. 
Shirts,  street  

dress  

sport  

Suits,  business  

dress 

sport 

wash 

Extra  coats  .... 

vests  

trousers  

jumper  

overalls  

57 


Number 
required 

Number 
on  hand 

Average 
cost 

Number  1 
to  purchase 

a  a 

&    $ 

o   » 

a  " 

<!  3 

Amount 
spent 

Amount 
different 

Footwear 

Street  shoes  

2 

1 

$10  00 

1 

$10  00 

$11  00 

$1  00!  + 

House  shoes  

Sport  shoes  

Slippers 

Overshoes 

Rubbers  

Gaiters  
Rubber  boots  
STREET  CLOTHING 
Overcoats  
Light  
Heavy  

Motor  
Fur 

Rain 

Sweaters  
Hats,  dress  

business  
cap  
straw  
ACCESSORIES  
Belts  

Suspenders  

Garters 

Studs 

Collars  

Ties 

"Muffler 

Handkerchiefs  

1  The  $.50  saved  from  the  nightshirt  was  used  for  the  street  shoes  and  $.50 
more  must  be  saved  from  some  other  purchase. 

Clothing  Budget  (Child) 


UNDERWEAR 

Union  suits 

Undervests 

Drawers 

Waists    .   . 

Princess  slips  
Bloomers 

Petticoats 

Nightgowns 

Bathrobes  

58 


Number 
required 

Number 
on  hand 

Bi     •*» 

^ 

IH      Oj 

*s 

•g  13 
§    § 
§    & 

Jj 

Amount 
spent 

Amount 
different 

Stockings 

cotton  

woolen         

Bathin^  suit     

OUTER  CLOTHING 
Suits,  wash  .   ... 

wool     ...   . 

athletic   . 

Extra  trousers  

Dresses,  wash  

wool  

Rompers  

Aprons  

Overalls  
Footwear  
dress  shoes 

school  shoes  

house  shoes 

sneakers  
bath  shoes  

overshoes  
rubbers  . 

rubber  boots 

skating  boots  
STREET  CLOTHING 
Coats,  winter  
spring  . 

rain  

sweater  
Hats,  winter  

spring  

summer  

caps 

ACCESSORIES  

Hair  ribbons  

Belts    .  .. 

Ties  .  .   . 

Sashes 

Gloves  

Garters  

Collars  

Mufflers  

Mittens  

Handkerchiefs  

59 


CHAPTER   VII 
STANDARDS  FOR  OPERATING  EXPENSES 

The  standards  for  operating  should  be  in  accord- 
ance with  those  for  shelter  and  clothing.  A  family 
with  a  moderate  income  must  often  choose  between 
the  pleasures  and  advantages  of  recreation,  social 
life  and  education,  and  the  comfort  and  ease 
which  may  result  from  spending  more  money  for 
operating.  Absolutely  necessary  operating  ex- 
penses are  for  heat,  light  and  water.  When  those 
are  provided  and  there  is  still  money  available,  it 
is  used  for  laundry;  service;  telephone;  repairs 
and  replacement  of  equipment;  household  sup- 
plies, as  candles,  soap,  paper,  brushes,  etc.; 
miscellaneous  expenditures  for  postage,  express, 
etc.  The  regular  purchase  of  flowers  for  the 
house  might  be  considered  an  operating  expense. 
In  some  cases  flowers  must  be  counted  as  a 
part  of  the  cost  of  entertaining,  hi  others  a  form 
of  personal  indulgence  or  gifts.  The  budget 
maker  should  take  time  to  formulate  standards 
and  make  the  budget  with  those  standards 
clearly  in  mind.  When  there  are  bills  for  a  pre- 
vious season  these  should  be  consulted;  the  fuel 

60 


STANDARDS  FOR  OPERATING  EXPENSES 

budget  can  best  be  planned  if  the  number  of 
tons  of  coal  necessary  is  known,  but  with  no 
records    of    the   past    for    guidance,    a   reliable 
dealer  will  estimate  the  amount  of  coal  needed  very 
accurately.    One  dealer  has  said  that  a  ton  of  coal 
for  each  one  hundred  square  feet  of  floor  space  is  a 
safe  estimate,  but  that  the  height  of  ceilings  and 
open  hall  spaces,  kind  of  plaster  used  and  the 
thickness  of  the  walls  affect  the  total  amount  ap- 
preciably.    A  house  built  with   lining  paper  in 
the  walls  requires  less  coal  than  one  unlined.    Af- 
ter a  careful  estimate  is  made,  the  man  of  the  house 
should,  by  care  and  attention  to  the  problem,  en- 
deavor to  run  the  fire  so  economically  as  to  beat 
his  budget.    Careful  watch  on  the  kitchen  stove 
will  save  many  a  hod  of  coal.     The  electric  light 
bill  can  be  estimated  by  counting  the  number  of 
bulbs  with  their  wattage  and  averaging  the  number 
of  hours  per  day  each  will  probably  be  burned. 
For  example,  in  a  city  where  the  charge  is  ten  cents 
a  kilowatt  hour,  a  three-room  apartment  has  nine 
fixtures,  two    10-watt  bulbs,  six  25-watt  bulbs, 
one   40-watt   bulb.     A   toaster  and  flatiron  are 
also  used.    The  cost  of  electricity  for  that  apart- 
ment was  estimated  in  the  following  way: 

10-watt  bulb  averaging  20  minutes  a  day,  or  10 
hours  a  month,  100  watts  a  month  for  1  cent. 
61 


SPENDING  THE  FAMILY  INCOME 

10-watt  bulb  averaging  1J  hours  a  day,  or  45 
hours  a  month,  450  watts  a  month  for  4| 
cents. 
25-watt  bulb  averaging  2  hours  a  day,  or  60  hours 

a  month,  1500  watts  a  month,  for  15  cents. 
40-watt  bulb  averaging  10  hours  a  month,  or  400 

watts,  for  4  cents. 
25-watt  bulb  averaging  1  hour  a  day,  or  30  hours 

a  month,  750  watts  at  7J  cents. 
25-watt  bulb  averaging  1  hour  a  day,  or  30  hours 
a  month,  750  watts  for  7|  cents. 
100 
450 
1500 
400 
750 
750 

3950  watts  for  39?  cents. 

A  toaster  is  used  about  ten  minutes  each  day,  esti- 
mated to  average  two  hours  a  week  or  eight  hours 
a  month,  561  watts  an  hour  or  4488  a  month  for 
44  cents.  The  flatiron  used  on  an  average  of  three 
hours  a  week  or  twelve  hours  a  month  burns  572 
watts  an  hour  or  6804  watts  a  month  for  68  cents. 

Light 3950 

Toaster.  .  .     4488 
Flatiron  .  .     6804 

15,242  watts  per  month  for  $1.52. 
62 


STANDARDS  FOR  OPERATING  EXPENSES 

The  cost  of  lighting  this  apartment  would  easily  be 
doubled  if  carbon  bulbs  were  used.  If  50-watt 
bulbs  were  in  each  fixture,  the  cost  would  be  92 
cents  a  month  for  lights  alone.  In  making  the  es- 
timates, except  in  the  use  of  the  flatiron,  an  effort 
was  made  to  plan  on  the  maximum  rather  than  the 
minimum  time  that  electricity  would  be  used.  In 
summer  the  bills  are  smaller,  but  in  winter  they 
range  from  eleven  to  thirteen  kilowatt  hours  and 
could  reach  fifteen  kilowatt  hours  without  causing 
the  housekeeper  to  feel  that  she  had  been  extrava- 
gant or  was  going  beyond  her  budget. 

The  standards  in  shelter,  food  and  clothing  gov- 
ern the  standards  for  operating.  The  amount  of 
paid  service  required  depends  largely  upon  the 
kind  of  shelter  provided.  Open  rooms  require 
more  heat,  light  and  care.  More  frequent  and 
elaborate  entertaining  is  possible  in  a  large  house 
than  in  a  small  one,  and  entertaining  adds  to  other 
operating  costs,  especially  light  and  service.  Op- 
erating costs  are  less  in  an  apartment  where  there 
is  janitor  service  and  where  heat  is  furnished.  The 
amount  of  service  necessary  is  also  affected  by  the 
choice  and  serving  of  food.  If  a  simple  table  serv- 
ice is  provided  and  only  a  few  kinds  of  food  offered 
at  a  meal,  less  service  is  necessary  in  the  kitchen 
and  the  cost  of  preparing  the  food  is  reduced. 

63 


SPENDING  THE  FAMILY  INCOME 

Answering  the  telephone,  constant  demands  for 
personal  attention,  elaborate  table  service  all  add 
to  the  cost  and  amount  of  necessary  service.  The 
housekeeper  who  insists  upon  living  up  to  a  formal 
standard  must  be  prepared  to  pay  for  it  in  extra 
service  charges,  and  every  increase  in  paid  service 
adds  to  the  cost  of  food,  light,  fuel  equipment  and 
rent. 

Standards  in  clothing  affect  the  cost  of  laundry. 
Decisions  in  regard  to  the  use  of  plain,  trimmed  or 
knit  underwear,  washable  or  woolen  dresses,  petti- 
coats or  bloomers  for  the  girls,  wash  or  serge  suits 
for  the  boys,  the  number  of  times  sheets,  towels, 
pillow  cases  and  table  linen  are  changed  are  all  vi- 
tal when  considering  the  cost  of  operating.  Choice 
also  must  be  made  in  regard  to  the  method  of  get- 
ting the  laundry  work  done,  —  wet  wash,  flat 
work  and  home  service,  all  home  service,  all  steam 
laundry,  laundress  by  the  day  with  sheets  sent  out, 
laundress  taking  the  work  home  or  the  work  done 
by  the  members  of  the  family  should  all  be  consid- 
ered, and  a  decision  made  on  the  basis  of  compara- 
tive cost  and  satisfaction. 

Danger  lies  in  the  fact  that  one  demand  after 
another  is  made  upon  the  budget  for  operating 
without  realization  of  the  aggregate.  At  least 
once  in  the  year,  at  budget-making  time,  we  should 

64 


STANDARDS  FOR  OPERATING  EXPENSES 

analyze  our  expenditures  for  operating  carefully, 
select  from  them  those  which  are  essential  either 
to  well-being  or  comfort.  If  we  reject  those  which 
are  superfluous  and  add  nothing  to  the  real  satis- 
factions of  life,  we  shall  live  more  sensibly  on  less 
money.  For  those  who  wish  a  guiding  percentage, 
the  average  amount  for  operating  allowed  by  most 
writers  is  twelve  to  fifteen  per  cent  of  the  income, 
but  the  success  of  any  budget  is  in  the  complete- 
ness with  which  it  solves  an  individual  problem, 
and  the  maker  of  the  budget  must  be  the  judge 
of  the  operating  costs  for  which  it  is  necessary  to 
provide  from  his  income.  The  small  leaks  in 
household  expenditure  are  most  frequently  found 
in  the  operating  section;  because  they  are  small 
they  are  overlooked  as  of  little  or  no  consequence, 
but  their  sum  total  is  large  enough  to  add  many 
much  desired  articles  to  the  budget  plan  if  the 
budget  maker  is  only  wise  enough  to  discover  and 
stop  the  leaks.  Examine  every  operating  ex- 
pense: the  careless  use  of  light,  water,  fuel,  tele- 
phone, table  linen,  towels  or  household  supplies, 
the  unrecognized  increase  in  service  demands,  all 
produce  leaks  which  are  expensive.  Operating 
expenses  should  be  fixed  at  the  lowest  amount 
compatible  with  health  and  comfort  and  consist- 
ent with  the  other  standards  of  living. 

65 


SPENDING  THE  FAMILY  INCOME 

One  cost  of  operating  which  is  frequently  neg- 
lected is  that  for  repair  and  replacement  of  equip- 
ment. Instead  of  setting  aside  a  definite  amount 
of  money  for  repairs  to  equipment  and  once  or 
twice  a  yearimaking  a  careful  survey  of  furniture, 
linen  andlbedding,  and  spending  the  money  to  the 
best  advantage  in  repairing  all  breaks,  taking 
stitches  in  time  to  save  nine  —  and  often  to  pre- 
vent total  loss> —  the  equipment  is  allowed  to  de- 
teriorate until  suddenly  everything  seems  to  be  at 
the  breaking  point.  Then  either  the  entire  fur- 
nishing must  appear  shabby,  or  everything  must 
be  repaired  or  replaced  at  once,  and  some  really 
necessary  purchases  must  be  foregone  in  order  to 
prevent  the  household  goods  Jrom  reaching  a  state 
of  decrepitude  which  prevents  comfortable  living. 
A  definite  plan  for  the  replacement  of  china, 
kitchen  utensils  and  bed  or  table  linen  will  prevent 
the  tragedy  of  a  vanishing  supply  at  the  moment 
when  an  overstrained  bank  account  seems  to  make 
replacement  impossible  without  depriving  the  fam- 
ily of  necessities  or  leaving  the  taxes  unpaid. 

A  distinction  between  replacement  and  new 
equipment  must  be  made,  as  expenditures  for  the 
latter  should  be  classed  under  development  rather 
than  as  operating.  Some  one  has  said  that  any 
article  which  cost  less  than  a  dollar  or  would  last 

66 


STANDARDS  FOR  OPERATING  EXPENSES 

less  than  a  year  belonged  in  operating,  while  more 
permanent  additions  to  equipment  were  a  matter 
of  choice  and  should  be  charged  to  development. 
The  money  spent  for  replacing  a  broken  drinking 
glass  is  thus  assigned  to  operating,  while  a  dozen 
new  glasses  of  finer  quality  or  design,  purchased 
as  new  equipment,  belong  under  development. 
When  considering  equipment  like  a  washing-ma- 
chine or  vacuum  cleaner,  the  purchase  of  which  is 
to  reduce  operating  expense  for  service,  it  is  possi- 
ble to  arrange  to  pay  for  them  from  the  money 
saved.  Such  purchase  of  worth-while  household 
machinery  for  the  reduction  of  labor  seems  justifi- 
able whenever  it  can  be  shown  that  its  use  will  re- 
duce operating  expenses  or  prevent  doctor's  bills, 
and  if  a  system  of  partial  payments  makes  it 
possible  to  obtain  this  equipment,  the  monthly 
payments  are  chargeable  to  operating. 

Purchasing  new  furniture,  a  piano,  victrola 
or  automobile  on  such  an  instalment  plan  is  a 
different  matter  and  can  hardly  be  justified  by  any 
reasoning.  Payments  of  this  sort  are  expensive 
and  eat  into  the  income.  The  purchases  never 
"earn  their  keep,"  and  it  is  a  far  safer  and  more 
cheerful  procedure  to  save  to  buy  than  to  buy  and 
save  to  pay. 


67 


CHAPTER  VIII 
STANDARDS  FOR  DEVELOPMENT 

The  money  spent  for  development  of  the  spir- 
itual, mental,  social  and  physical  sides  of  family 
life  is  indicative  of  the  character  of  the  spenders 
far  more  than  is  the  money  spent  for  food,  cloth- 
ing and  shelter.  True,  expenditures  for  the  other 
four  groups  may  be  in  excess  of  the  amount  which 
is  necessary,  advisable  or  even  desirable,  but  that 
may  be  due  to  ignorance  or  unwillingness  to  plan. 
The  results  are  often  unworthy  the  amount  spent 
to  obtain  them  and  their  cost  so  encroaches  upon 
the  resources,  that  the  expenditures  of  a  family 
become  merely  indicative  of  their  desire  for 
material  things.  But  in  the  final  arrangement 
of  the  budget,  it  is  the  plan  for  development 
which  indicates  the  real  preferences  of  the 
family. 

Just  as  the  budget  of  the  individual  should  in- 
clude provision  for  saving,  "  necessities  "  and  de- 
velopment, so  must  the  family  consider  the  three 
and  thus  plan  for  well-rounded  life.  Personal 
taste,  ideals,  guiding  principles,  will  cast  the  decid- 

68 


STANDARDS  FOR  DEVELOPMENT 

ing  vote  as  to  the  nature  of  expenditures  for  de- 
velopment. There  is  necessity  for  honest  study  of 
the  problem  with  due  consideration  of  all  the  needs 
and  characteristics  of  the  various  members  of  the 
family.  The  choice  should  not  be  left  to  chance, 
for  drifting  leads  often  to  the  choice  of  the  least 
good.  Careful  thought  upon  the  subject  brings  a 
more  definite  sense  of  values  —  minimizes  money 
value  —  and  develops  more  constructively  the 
principles  which  should  guide  the  expenditure  of 
money  beyond  that  used  for  absolute  necessities. 
Progress  is  only  made  through  effort,  and  a  drift- 
ing choice  requires  no  effort.  Decisions  should  be 
the  result  of  conscious  choice.  At  first  the  direc- 
tion of  choice  is  less  important  than  the  conscious- 
ness, for  if  the  results  are  disappointing  a  lesson 
has  been  learned,  and  wiser  choice  will  result  a  sec- 
ond time.  Choose  things  which  endure;  choose 
those  things  which  are  suitable  to  the  environment; 
choose  because  of  personal  ideals,  not  because  of 
those  of  other  people.  Hold  fast  to  the  principle 
of  growth,  whether  physical,  spiritual  or  mental. 
Conscious  choice  is  only  possible  with  a  margin 
beyond  that  necessary  for  decent  living.  After 
that  point  is  reached,  one  can  choose  between  effi- 
ciency, luxury  and  savings.  After  efficiency  has 
been  obtained,  choice  is  between  greater  refine- 

69 


SPENDING  THE  FAMILY  INCOME 

ments  of  mental  and  social  life,  physical  luxury  and 
savings.  The  incentive  to  wise  choice  may  come 
from  desire  —  or  from  force.  Desire  may  be  in- 
nate, springing  from  guiding  principles,  or  the  re- 
sult of  envy,  which  leads  one  to  copy  the  life  of  his 
neighbor.  Force  may  be  applied  by  environment 
or  business  conditions. 

Whether  the  margin  beyond  necessities  is  large 
or  small,  there  are  certain  well-defined  needs  which 
should  be  considered.  The  wise  family  saves 
something  for  a  rainy  day;  gives  something  to 
others,  making  service  one  of  its  guiding  principles; 
spends  something  for  mental,  social  and  physical 
development.  The  expenditures  for  mental 
growth  will  include  those  for  newspapers,  books, 
tuition  for  special  classes,  lectures,  perhaps  con- 
certs, travel,  art;  and  those  for  social  development 
must  include  entertaining  and  personal  gifts. 
Spiritual  development  includes  service  to  others, 
religious  activities  and  benevolences.  Physical 
development  covers  vacations,  health,  doctor,  den- 
tist, occulist,  optician,  medicines,  etc.,  —  as  well 
as  recreation,  games,  physical  training  classes.  It 
is  true  that  many  of  these  may  be  obtained  with 
little  or  no  expenditure  of  money,  while  others 
cost  much  money.  The  well-rounded  plan  of 
life  will  include  some  provision  for  each  one  of 

70 


STANDARDS  FOR  DEVELOPMENT 

these  divisions,  and  though  the  size  of  the  income 
may  be  a  deciding  factor  in  the  choice,  it  is  well  to 
remember  that  the  greatest  opportunities  for  en- 
joyment are  frequently  offered  without  price. 
Individual  characteristics  always  determine  which 
direction  choice  will  follow,  but  if  there  is  serious 
consideration  in  the  family  of  the  characteristics 
which  should  be  developed  in  each  member,  and 
conscious  choice  is  made  between  the  various  ob- 
jects for  which  the  available  money  may  be  spent, 
the  result  will  be  better  development  for  each, 
greater  returns  for  the  money  and  more  under- 
standing of  the  meaning  of  life  and  of  the  family 
and  individual  responsibilities  toward  our  fellow 
men. 

Because  the  standards  in  food,  clothing,  shelter 
and  operating  frequently  increase  until  they  are 
open  to  the  charge  of  being  standards  of  luxury  be- 
yond the  limits  of  reason  for  individual  incomes,  it 
is  well  for  the  budget  maker  who  is  defining  his 
standards  in  development  to  review  those  of  the 
other  four  groups  of  expenditure  and  see  whether 
unconsciously  or  with  premeditation  luxuries  have 
crept  in  to  those  groups  which  are  likely  to  prevent 
more  worth-while  expenditures  in  the  fifth  group. 
For  this  reason  a  partial  list  of  luxuries  in  each 
group  is  included  hi  this  chapter. 

71 


SPENDING  THE  FAMILY  INCOME 

Luxuries  in  Food  are  foods  beyond  the  body 
needs: 

condiments 
delicacies 

out  of  season  fruits  and  vegetables 
expensive  cuts  of  meat 
careless  marketing 

expensive  food  materials  to  avoid  the  necessity 
for  careful  preparation 

Luxuries  in  Shelter  are : 
house  larger  than  required 
private    bathrooms,    extra   sitting   rooms,    single 

bedrooms 

location  chosen  especially  for  social  environment 
expensive  finish 
excessive  distance  from  business  and  schools 

Luxuries  in  Clothing  are: 

styles 

materials  too  fine  for  the  service  desired 

trimmings 

hand  work 

custom-made  garments  in  place  of  ready-made 

ready-made  undergarments  in  place  of  home- 
made when  time  and  strength  allow  home- 
made 

Luxuries  in  Operating  are: 
careless  use  of  heat,  light,  water  and  house  supplies 
service  for  formality  alone,  beyond  that  required 
for  health 

72 


STANDARDS  FOR  DEVELOPMENT 

service  which  simply  relieves  children  from  neces- 
sity to  help 

lavish  replacement  of  equipment 
telephone 

Luxuries  which  need  careful  scrutiny  are  ex- 
penditures for: 

transportation,  carfare,  taxi,  etc. 

elaborate  entertaining 

lavish  gifts  to  friends 

candy,  tobacco,  flowers 

personal  and  house  equipment 

unregulated  additions  to  children's  allowances 

social  clubs 

expensive  recreation 

disregard  of  opportunities  for  free  recreation 

money   saved   at  expense  of   health,  welfare  or 

efficiency 
automobile  for  pleasure  only 


73 


CHAPTER  IX 
DISTRIBUTION  OF  INCOME 

When  one  is  making  a  budget  the  various  items 
of  household  expense  fall  quite  naturally  into  six 
groups:  food,  shelter,  clothing,  operating,  saving, — 
and  a  sixth  so  diversified  that  it  is  difficult  to  name 
it.  This  group  has  been  variously  called  the  Mar- 
gin, Higher  Life,  Betterment,  Life  of  the  Family, 
Region  of  Choice,  Well  Being,  Development  and 
Advancement.  Whichever  title  is  chosen,  the  ex- 
penditures are  the  same  and  in  most  cases  indicate 
the  cost  of  spiritual,  mental,  social  and  physical 
development  for  the  family. 

There  are  various  ways  of  getting  at  the  proper 
proportion  of  the  income  to  spend  for  each  group,, 
Mrs.  Richards  came  to  the  conclusion,  after  much 
study  of  many  groups  of  accounts,  that  the  ideal 
percentages  for  a  family  of  five  were: 

Food,  25  per  cent  Clothing,  15  per  cent 

Shelter,  20  per  cent         Operating,  15  per  cent 

Higher  Life  and  Savings,  25  per  cent 
There  are  people  who  insist  that  45  per  cent  to  50 
per  cent  of  one's  income  should  be  saved,  others 

74 


DISTRIBUTION  OF  INCOME 

that  10  per  cent  should  be  given  away.  One 
definite  rule  often  quoted  is  that  no  more  than 
one  week's  income  should  be  spent  for  rent  each 
month:  and  another,  that  one  half  the  amount 
spent  for  rent  should  be  all  that  is  allowed  for  ser- 
vice each  year. 

Those  who  use  percentages  agree  that  they  are 
only  guides,  and  that  as  the  income  drops  below 
three  thousand  dollars  the  necessary  percentage 
for  food  is  increased,  while  above  five  thousand 
dollars  it  is  usually  possible  to  use  a  smaller  per- 
centage. In  general,  according  to  Engel's  Laws, 
experience  seems  to  prove  that  the  proportion  for 
clothing  and  rent  remains  fairly  stationary,  but 
as  the  income  decreases,  the  percentage  spent  for 
development  also  decreases,  while  an  increase  in 
income  usually  leads  to  decrease  in  the  percentage 
allowed  for  food  and  increase  in  that  devoted  'to 
development. 

The  fact  that  proper  percentages  vary  with 
every  change  in  income  is  only  a  part  of  the  reason 
for  not  placing  too  much  stress  upon  their  use. 
Given  incomes  which  are  alike,  two  families  will 
spend  very  differently,  and  because  of  differences 
in  education,  social  position,  occupation,  number 
in  the  family,  health  and  environment,  the  family 
which  spends  in  accord  with  the  so-called  ideal 

75 


SPENDING  THE  FAMILY  INCOME 

percentages  may  in  the  end  receive  less  of  real  value 
in*  return  than  the  family  which  has  arranged  its 
expenditures  in  such  a  way  that  the  ideal  percent- 
•ages  are  ignored  to  solve  some  individual  problem. 
'  The  following  plan  is  an  easy  one  for  the  house- 
holder whose  mind  does  not  work  comfortably 
with  percentages  which  do  not  stay  ideal  but  must 
be  changed  with  every  new  problem.  It  is  neces- 
sary for  each  budget  maker  who  has  an  income  tax 
to  pay  to  decide  what  place  to  give  the  tax  in  the 
budget.  The  taxes  may  be  subtracted  from  the 
gross  income  and  the  budget  made  for  the  amount 
which  remains;  or  the  income  taxes  may  be  con- 
sidered as  belonging  to  the  section  of  expenditures 
devoted  to  development,  as  only  the  people  who 
have  a  margin  to  spend  for  development  have  in- 
come taxes  to  pay.  Income  taxes  are  not  charge- 
able to  the  operating  expense  of  the  house.  It  is 
important  that  no  one  who  can  avoid  doing  so 
should  reduce  his  savings  because  of  his  income 
taxes.  Subtract  from  the  total  income,  the  amount 
which  it  seems  desirable  to  save,  the  income  tax 
and  any  fixed  charge  for  expenditures  outside  the 
family  i.e.,  care  of  dependents,  or  business  costs. 
Then  plan  as  if  the  remainder  were  the  total  in- 
come and  divide  it  into  five  equal  parts,  assigning 
one  part  to  each  of  the  five  groups  of  expendi- 

76 


DISTRIBUTION  OF  INCOME 

tures.  At  the  beginning  assume  that  each  group 
is  of  equal  importance;  later  subtract  from  the 
allotment  of  one  group  in  order  to  add  to  that  of 
another  group  which  proves  its  need  of  more  than 
its  fifth.  (See  Chart  Number  II.) 

There  are  four  adjectives  which,  applied  to  the 
groups  of  expenditures,  assist  in  determining  the 
minimum  amount  required  for  each  group,  but 
knowledge  of  conditions  is  necessary  in  order  to 
estimate  the  actual  cost  for  each  family,  and  each 
budget  should  be  based  upon  estimates  made  after 
consideration  of  the  individual  problem  with  all 
the  existing  circumstances. 

Safe  shelter  indicates  the  fact  that  certain  local- 
ities and  houses  are  impossible,  if  the  moral  and 
physical  health  of  the  family  are  to  be  safeguarded. 
The  budget  maker  with  knowledge  of  the  locality 
where  he  must  live  can  easily  learn  the  minimum 
amount  which  he  must  allow  for  rent  if  he  is  to 
keep  his  self-respect  and  avoid  danger  to  the  family 
health. 

Adequate  food  indicates  not  a  definite  sum  to  be 
spent  for  food,  but  a  fixed  standard  which  cannot 
be  reduced  if  the  health  and  efficiency  of  the  family 
are  to  be  maintained. 

Suitable  clothing  again  indicates  a  minimum,  but 
no  definite  amount  of  money  can  be  fixed  as  the 

77 


SPENDING  THE  FAMILY  INCOME 

minimum  absolutely  necessary  to  assign  to  cloth- 
ing, for  without  knowledge  of  the  special  problem 
one  cannot  tell  what  the  demands  will  be  in  order 
that  a  family  may  be  suitably  clothed.  City  or 
country  life,  a  mother  who  sews,  clothing  to  make 
over  or  hand  down  all  affect  the  actual  expense 
without  necessarily  reducing  the  standards  for  a 
particular  family. 

Necessary  operating  may  mean  heat,  light,  and 
water  only,  but  if  there  is  illness,  other  items  will 
be  forced  into  the  group,  and  once  more  the  adjec- 
tive indicates  a  minimum  standard  but  does  not 
fix  an  amount  until  a  special  problem  is  under  dis- 
cussion. 

Having  definite  standards  well  in  mind,  the  cost 
of  maintaining  those  standards  must  be  estimated. 
Make  a  list  of  all  possible  expenditures  for  a  family 
with  the  standards  outlined.  Divide  these  ex- 
penses under  the  five  heads,  —  shelter,  food,  op- 
erating, clothing  and  margin  for  development. 
Subdivide  each  group  under  three  heads,  —  fixed 
charges,  charges  possible  to  estimate  and  charges 
necessary  to  limit.  Some  expenses  can  be  charged 
in  either  of  the  last  two  groups.  When  that  is 
possible,  put  them  in  the  group  which  promises  the 
most  definite  information.1  Reference  to  old  bills, 

i  See  table,  page  87 
78 


DISTRIBUTION   OF  INCOME 

drawing  upon  past  experience,  conferences  with 
others  of  greater  experience,  or  in  many  cases  care- 
ful estimates  after  studying  the  situation  from 
every  point  of  view  will  be  of  assistance  in  deter- 
mining the  cost  of  each  item.  When  advice,  old 
bills  and  experience  are  all  lacking,  one  or  two 
months  of  careful  accounting  will  be  necessary. 

Decide  what  is  the  smallest  amount  for  which 
nourishing,  satisfying  food  can  be  provided.  If 
this  exceeds  the  portion  of  the  income  allowed  for 
food,  figure  how  much  it  exceeds  it  and  later  plan 
from  which  other  allotments  it  must  be  provided. 
If  it  is  less  than  the  allotment,  it  is  safe  to  increase 
it  to  the  full  amount,  though  not  necessarily  wise 
to  do  so. 

Count  the  rent  and  business  carfare  as  cost  of 
shelter,  if  the  house  is  hired.  The  rent  is  a  fixed 
charge;  carfare  may  be  estimated.  If  together 
they  exceed  the  allotment,  too  much  is  being 
planned  for  rent.  Can  it  be  reduced  and  still  pro- 
vide safe  shelter?  If  not,  then  the  extra  is  being 
spent  to  provide  comfort  or  safety,  and  it  may  'be 
taken  from  the  " margin"  allowed  for  development. 
When  the  amount  spent  for  rent  includes  heat, 
water  and  service  as  in  an  apartment  the  excess 
is  properly  taken  from  the  amount  assigned  to 
operating. 

79 


SPENDING  THE  FAMILY  INCOME 

Figure  carefully  the  amount  of  money  required 
to  clothe  the  family.  Make  careful  clothing  bud- 
gets and  estimate  the  cost  of  repairs,  making  and 
materials  as  well  as  clothing  purchased  ready-made. 
Experience  has  proved  that  the  amount  used  for 
clothing  should  not  exceed  the  fifth  allotted  to  it, 
and  in  small  families  might  well  come  below  that 
amount.  With  very  small  incomes  the  clothing 
must  be  reduced  to  provide  enough  food. 

Make  careful  and  complete  estimates  of  all  op- 
erating expenses.  Examine  the  items  separately 
to  be  sure  that  nothing  is  being  wasted.  Gas, 
electric  light  and  laundry  bills,  as  well  as  inciden- 
tals, may  often  be  reduced  if  care  is  taken  and  at- 
tention is  drawn  to  them.  When  the  items  in  op- 
erating expenses  have  been  figured,  add  them  up 
and  see  how  the  total  compares  with  the  amount 
allotted  to  the  group.  Remember  that  from  shel- 
ter, operating  and  development  the  extra  amount 
necessary  for  food  must  be  supplied.  It  is  quite 
probable  that  operating  expenses  will  prove  to  be 
absorbing  more  money  than  is  desirable.  It  is 
within  this  group  that  leakages  most  often  occur, 
and  with  care  reductions  may  be  made  with  no 
effort  for  the  family  beyond  a  slight  increase  in 
thoughtfulness. 

The  money  left  is  the  margin  for  development 
80 


DISTRIBUTION  OF  INCOME 

and  must  cover  expenditures  for  education,  church, 
culture,  social  life,  philanthropy,  health,  gifts  and 
new  equipment,  as  well  as  the  allowances  for 
personal  expenditures.  A  family  may  divide  the 
amount  for  petty  cash,  church  dues  and  philan- 
thropy, gifts,  club  dues  and  other  social  life,  ex- 
cept family  entertaining,  nto  separate  allowances, 
making  each  member  responsible  for  his  own  ex- 
penses for  advancement  as  well  as  those  for  cloth- 
ing and  petty  cash,  thus  teaching  the  children 
something  of  the  responsibilities  which  money 
entails. 

The  use  of  the  money  allotted  to  development  is 
almost  entirely  within  the  region  of  choice;  one 
family  may  prefer  to  use  it  all  for  education  and 
health,  another  for  travel,  a  third  for  philanthropy. 
For  each  family  there  is  a  distinct  advantage  in 
planning  the  expenditure  in  such  a  way  that  a  well- 
rounded  family  life  results.  Something  for  edu- 
cation, culture,  health,  play,  church  and  civic  ac- 
tivities, as  well  as  social  life  should  be  included  in 
this  plan.  This  allotment  most  often  gives  up  a 
large  portion  to  food,  shelter  or  clothing;  it  should 
not  give  money  to  operating  except  under  great 
need,  when  the  health  of  the  home-maker  requires 
extra  service. 

These  estimates  and  apportionments  are  made 
81 


SPENDING  THE  FAMILY  INCOME 

on  the  basis  of  the  minimum  amounts  required  for 
the  special  problems  involved.  Should  there  be  a 
larger  margin  than  seems  necessary  for  saving, 
each  item  should  be  gone  over  carefully  in  order  to 
determine  where  expenditures  may  be  increased 
so  that  the  family  will  receive  the  greatest  benefit 
and  satisfaction.  One  family  will  prefer  to  keep 
the  expenditure  for  food  at  the  minimum  for  ade- 
quate food,  increasing  operating  expenses  to  a 
point  of  greater  comfort,  while  anotherfamily  will 
feel  it  desirable  to  maintain  its  other  standards  of 
living  at  the  minimum  cost  in  order  to  save  for 
education,  travel  or  giving. 

When  all  estimates  and  apportionments  are 
made,  if  the  total  exceeds  the  amount  of  the  in- 
come, new  standards  must  be  outlined.  Expendi- 
tures must  be  weighed;  those  which  are  merely  to 
gratify  desires  (not  for  real  needs)  eliminated;  and 
costs  reduced  to  the  lowest  amount  consistent 
with  health.  When  this  proves  to  be  not  reduc- 
tion enough,  it  is  safe  to  conclude  that  the  stand- 
ards for  saving  are  too  high  Adequate  food,  safe 
shelter,  suitable  clothing  necessary  operating 
should  be  provided  before  very  much  money  is  as- 
signed to  development,  but  before  expenditures 
for  advancement  are  omitted  altogether,  one 
should  be  sure  that  other  expenditures  are  not  in 

82 


DISTRIBUTION  OF  INCOME 

excess  of  what  is^necessary  to  provide  adequate 
food,  safe  shelter,  suitable  clothing,  and  necessary 
operating. 

Savings  should  be  made  by  every  family  with 
income  enough  to  provide  a  margin  over  and 
above  food,  shelter,  clothing,  heat,  light  and  water, 
but  savings  should  not  cut  down  efficiency. 


SUMMARY 

1.  Be  sure  every  member  of  the  family  will  co- 
operate. 

2.  Examine  your  family  life  carefully  to  be 
sure  that  you  have  definite  standards  of 
living;   write  out  your  idea  of  what  your 
particular  income  should  provide  in  the  way 
of  shelter,  food,  clothing,  operating  and  de- 
velopment for  your  family.    This  is  not  a 
necessary  step,  but  it  helps  very  much  to 
put  into  words  just  what  you  demand  from 
your  income. 

3.  Make  a  list  of  all  possible  expenditures  for  a 
family  with  the  standards  outlined. 

4.  Divide  them  under  five  heads: 

Shelter,  Food,  Clothing,  Operating,  Mar- 
gin for  Development. 
83 


SPENDING  THE  FAMILY  INCOME 

5.  Divide  each  group  under  three  heads: 

Charges  fixed.    Charges  possible  to  esti- 
mate.   Charges  necessary  to  limit. 

6.  Estimate  the  total  income  for  the  coming 
year.     When  this  is  irregular  or  uncertain 
estimate  the  minimum  amount  probable 
and  base  the  living  standards  upon  that 
amount  planning  to  save  all  income  in  ex- 
cess of  that  minimum. 

7.  Decide  how  much  should  be  saved  and  sub- 
tract it  from  the  total  income. 

8.  Divide  the  rest  of  the  income  into  five  equal 
parts  and  assign  one  part  to  each  of  the  five 
groups  of  expenditures. 

9.  Decide  what  is  the  minimum  amount  for 
which  nourishing,  satisfying  food  can  be 
provided. 

10.  Estimate  the  cost  of  shelter,  include  rent  or 
4        interest,  taxes,  repairs  and  insurance  and 

business  and  school  carfares. 

11.  Figure  the  amount  required  to  clothe  the 
family;  make  clothing  budgets. 

12.  Make  careful  and  complete  estimates  of  all 
operating  expenses. 

84 


DISTRIBUTION  OF  INCOME 

13.  Apportion   the  remainder  of   the  income 
among  the  needs  for  education,  church,  so- 
cial life,  philanthropy,  health,  gifts,  new 
equipment  and  allowances  for  personal  ex- 
penditures. 

14.  When  all  apportionments  are  made,  put 
them  into  a  graphic  circle  and  analyze  and 
judge  the  result  to  see  whether  lack  of  bal- 
ance may  be  accounted  for  and  is  excusable. 

15.  Do  not  reduce  any  section  unnecessarily  by 
careless  expenditures  in  another  division  of 
the  circle. 

16.  If  the  total  expenditures  planned  are  larger 
than  the  total  income,  reduce  standards  in 
shelter,  operating  and  clothing  before  elim- 
inating  worth-while  expenditures   for   de- 
velopment. 

17.  If  the  income  is  increased  after  standards  of 
living  are  already  comfortable,  do  not  in- 
crease expenditures  for  food,  clothing,  shel- 
ter and  operating  until  the  standards  for 
saving  and  development  have  first  been  im- 
proved. 

It  is  important  — 
To  have  a  plan  for  spending; 
To  spend  according  to  the  plan; 
85 


SPENDING  THE  FAMILY  INCOME 

To  keep  records  of  expenditures; 

To  study  the  records,  and   compare  them  with 

the  plan; 
To  build  a  new  plan  on  the  basis  of  the  lessons 

learned  from  the  records. 

Poor  budgeting  with  a  record  is  far  better  than 
no  budget.  The  record  will  help  make  the  second 
budget  better.  A  record  of  expenditures  com- 
pared with  a  budget  makes  improved  spending 
possible.  The  mistakes  of  last  year  may  thus 
point  the  way  to  success  this  year.  In  the  follow- 
ing list,  many  items  are  included  which  would  not 
be  required  by  every  family.  They  are  offered 
only  as  suggestions. 


86 


DISTRIBUTION  OF  INCOME 

HOW  MANY  OF  THESE  MUST  YOUR  INCOME  BUY 

Cross  out  the  items  you  do  not  use.    Add  other  items  which  you  do  use. 


Savings 

Food 

Clothing 

Shelter 

Operating 

Development 

Savings 

Rent 

Water  (if  not 

Church  Dues 

Bank 

Interest  on 

metered) 

Club  Dues 

Cooper- 
ative 
Bank 
Life  In- 
surance 

mortgage 

Service 
Telephone 
Fire  and 
Burglar 
Insurance 

Magazine  sub- 
scriptions 
Newspaper 
subscriptions 
Tuition 

Securities 

Personal 

allowances 

Automobile 

Garage 
Juice  nse 

Registration 

Groceries 

New  ma- 

Taxes 

Water  (if 

Philanthropy 

Ice 

terials 

(house) 

metered) 

Amusements 

Income 

Milk 

New  cloth- 

Business 

Coal 

Concerts 

Tax* 

Meat 

ing 

carfare 

Wood 

Carfare  (per- 

Vegetables 

Firo  Insur- 

Gaa 

sonal) 

Fruits 

ance 

Electricity 

Automobile 

(house) 

Household 

Running 

Supplies 
Laundry 

expenses 

Outside 

Cleansing 

Repairs 

Extra  service 

Doctor  — 

meals 
Ghrt  of  sea- 
son foods 

Repairs 

(house) 

Long  distance 
telephone 
Repair     and 

dentist 
Travel 
Books 

replacement 

Gifts  (per- 

of equip- 

sonal) 

ment 

Automobile 

Extra  Laun- 

Repair 

Incidentals 

Equipment 
Entertaining 

Express 

New    equip- 

Postage 

ment 

House  car- 

Personal In- 

fare,  etc. 

dulgenoies 

Care  of 

Candy 

grounds 

Tobacco 

Flowers 

Etc. 

*  Income  Tax  is  not  saving,  but  is  a  charge  possible  to  estimate. 


87 


CHAPTER  X 
HOUSEHOLD  ACCOUNTING 

It  is  difficult  for  the  beginner  to  realize  that 
there  is  a  definite  limit  to  the  returns  which  may  be 
had  from  a  given  income,  that  only  hi  our  dreams 
can  the  same  money  be  spent  twice.  Fortunately 
the  experience  gained  in  spending  may  be  used  to 
advantage  in  planning  for  the  next  year,  provided 
a  record  has  been  kept  which  can  be  studied  and 
used  as  a  basis  for  the  revision  of  the  spending 
plan*  Without  such  records  there  is  no  method 
by  which  it  is  possible  to  determine  the  compara- 
tive value  of  the  purchases  made.  The  house- 
keeper should  keep  these  records  hi  a  simple  form 
which  require  a  minimum  amount  of  time  and  is 
easily  understood  by  a  third  person.  The  system 
chosen  should  tell  when,  whence  and  what  is  re- 
ceived; when,  where  and  what  is  spent;  how  much 
is  on  hand;  how  much  is  owed.  There  are  many 
systems  of  household  accounting,  and  it  is  well  to 
look  for  the  method  which  is  best  suited  to  the 
person  who  is  to  carry  it  out.  Keep  in  mind  al- 
ways that  such  accounts  should  be  kept,  not  for  the 

88 


HOUSEHOLDING    ACCOUNTING 

sake  of  having  a  record  of  each  cent  spent,  but  in 
order  that  they  may  be  used  to  check  expenditures. 

The  familiar  slogan,  "The  first  part  of  the  dol- 
lar is  the  easiest  part  to  save, "  is  balanced  by  an- 
other,—  "The  hardest  part  of  the  dollar  to  account 
for  is  the  last  five  cents  I" 

If  ninety-five  cents  is  accounted  for,  one  has 
material  for  study  and  comparison  with  the  bud- 
get. It  is  better  to  use  tune  planning  better  ways 
of  spending  than  to  waste  it  by  hunting  for  small 
sums  which  evade  the  memory.  This  is  not  meant 
to  be  approval  of  carelessness,  and  if  the  budget 
maker  finds  that  he  must  continually  record  sums 
as  unaccounted  for,  it  is  evident  that  there  is  a 
need  for  more  care.  Housekeeping  records  are 
usually  easily  kept  if  paper  and  pencil  are  in  or 
near  the  purse.  The  spender  who  goes  to  the 
store  with  many  small  errands  sometimes  finds  it 
impossible  to  account  for  all  purchases.  This  hap- 
pens less  often  if  the  habit  is  acquired  of  jotting 
down  the  amount  while  waiting  for  change.  Fre- 
quently people  find  that  petty  cash  for  the  house 
or  for  personal  expenses  will  not  balance,  and  they 
say,  "I  can't  bother  with  that,"  and  give  it  all  up. 
The  sensible  way  is  to  pay  as  many  bills  as  possible 
by  check.  Keep  an  approximately  accurate  ac- 
count of  petty-cash  expenditures  and  do  not  worry 


SPENDING  THE  FAMILY  INCOME 

over  failure  to  balance  to  a  penny.  Of  course,  if 
accounts  habitually  fail  to  balance  by  several  dol- 
lars, it  will  be  foolish  to  continue  such  slipshod 
methods,  but  a  few  cents  each  month  make  no  dif- 
ference in  the  value  of  the  record  and  a  great  deal 
of  strain  is  avoided.  A  convenient  method  of  car- 
ing for  personal  petty  cash  is  to  plan  it  very  care- 
fully after  study  of  the  average  amount  required 
each  day.  Regular  expenditures  may  be  for  food, 
carfare  and  newspaper.  Decide  what  should  be 
spent  each  day  for  these  purchases.  This  gives 
the  amount  for  petty  cash  each  week.  Let  us 
suppose  that  the  estimate  is  nine  dollars  for  the 
week's  charges.  Cash  a  check  for  that  amount 
each  Monday  and  spend  as  the  day's  needs  present 
themselves.  If  you  find  yourself  paying  more 
than  your  estimated  average  for  dinner  or  lunch- 
eon, try  to  economize  later  to  make  it  up.  If  you 
chance  not  to  buy  a  newspaper,  or  if  you  go  with- 
out a  meal,  pay  no  attention  to  the  fact  in  your  ac- 
counts. Seven  dollars  is  credited  for  food,  thirty 
cents  for  newspapers,  and  one  dollar  and  seventy 
cents  or  carfare.-  So  long  as  those  three  expendi- 
tures keep  within  the  total  for  the  week,  do  not 
concern  yourself  with  the  difference  in  distribution, 
but  if  the  money  gives  out  and  replenishing  is  nec- 
essary, search  carefully  for  the  particular  purchase 

90 


HOUSEHOLD  ACCOUNTING 

which  caused  the  calamity  and  make  a  note  of  that 
as  the  reason  for  the  extra  check.  If,  on  the  other 
hand,  money  is  left  at  the  end  of  the  week,  consider 
it  legitimate  to  use  for  extra  savings.  If  by  chance 
you  wish  to  pay  cash  for  some  particular  purchase 
outside  of  those  three,  do  so,  and  pay  the  money 
back  to  the  petty-cash  account  as  carefully  as  if 
borrowed  of  a  friend.  A  person  who  wishes  to 
keep  his  personal  accounts  with  sufficient  accuracy 
to  be  sure  he  is  not  spending  recklessly,  but  who 
does  not  wish  to  be  haunted  by  the  balancing 
bogey,  can  estimate  his  daily,  routine  expenses  in 
this  way  and  find  the  plan  works  well.  A  cash  ac- 
count is  one  step  better  than  nothing,  but  the  real 
value  of  a  record  of  expenditure  comes  from  know- 
ing the  total  amount  spent  for  each  group  of  com- 
modities. These  are  then  available  for  compari- 
son with  the  budget  estimates.  The  budget  acts 
as  a  pattern  for  spending,  and  the  accounts  indi- 
cate the  success  in  following  the  pattern.  Unless 
the  two  are  compared,  no  improvement  is  likely  to 
follow  the  use  of  either.  For  this  reason  the  ac- 
counts should  be  distributed  under  headings  corre- 
sponding exactly  to  those  used  in  making  the  bud- 
get, and  the  divisions  of  the  budget  should  be  made 
by  months  and  placed  at  the  head  of  each  column 
of  the  distribution  sheets  in  red  ink,  so  that  they 

91 


SPENDING  THE  FAMILY  INCOME 

will  be  easily  identified.  Some  budget  makers 
will  find  it  far  more  simple  to  distribute  the  ex- 
penditures'once  a  day,  or  as  they  are  made.  Others 
will  prefer  to  transfer  the  totals  of  each  week  from 
the  cash  book  and  distribute  all  at  one  time  at  the 
end  of  the  month,  —  then  entering  the  checks  for 
the  month,  distributing  each  and  making  a  sum- 
mary of  the  monthly  totals. 

There  are  many  printed  forms  from  which  to 
select.  Each  housekeeper  has  need  of  special  di- 
visions which  might  not  be  required  by  others,  and 
one  satisfactory  plan  is  to  purchase  ruled  sheets 
which  will  furnish  the  required  number  of  columns 
and  put  them  into  covers,  heading  each  column 
with  the  item  desired. 

There  are  two  things  which  can  be  done  which 
help  in  keeping  straight  with  a  budget  plan.  Each 
month,  after  closing  the  accounts,  make  out  a 
statement  of  assets  and  liabilities  for  the  next 
month.  This  helps  one  to  see  just  how  much  of 
the  bank  balance  will  be  necessary  for  regular  ex- 
penses,how  much  will  be  required  for  special  bills, 
and  what  will  be  left  for  emergencies  or  toward  a 
sinking  fund  for  the  large,  irregular  expenses  like 
coal,  taxes,  clothing,  etc.  Such  a  statement  might 
read  like  this: 


92 


HOUSEHOLD  ACCOUNTING 

Statement  of  Assets  and  Liabilities  August  10  to 
September  10 


in  Cash  .  . 

3.65 

Laundry  

8.50 

Petty  cash 

5  00 

Food 

52  00 

Salary 

208  33 

Service 

6  00 

To  be  refunded  .  .  . 

5.00 

Savings  

41.66 

Operating.  .  .  . 
Telephone.  .  .  . 
Balance  

3.00 
2.25 
162  33 

, 

$300.74  $300.74 

This  does  not  mean  that  there  is  $162.33  to 
spend  recklessly  but  that  this  amount  is  available 
for  purchasing  things  which  the  budget  planned 
for,  —  clothing,  pleasure,  personal  allowances  and 
equipment  or  to  meet  income  tax  payments-  or 
some  other  large  bill  during  the  next  months. 

Another  thing  which  helps  greatly  is  studying  to 
see  what  the  budget  plan  requires  for  the  months 
ahead  and  comparing  those  amounts  with  the 
amount  already  spent.  Consider  these  accounts 
textbooks  for  study,  so  that  they  may  add  to  your 
knowledge  each  month,  and  you  will  spend  better 
because  of  the  experience  gained.  It  also  assists 
in  studying  results  if  red  ink  is  used  whenever  an 
account  is  balanced.  Draw  all  lines,  enter  all  bal- 
ances or  any  unusual  records  in  red  ink,  which  call 

93 


SPENDING  THE  FAMILY  INCOME 

attention  at  once  to  the  record.  For  example,  in 
the  statements  just  shown,  the  balance  would  be  in 
red  ink  to  show  that,  although  appearing  in  the 
column  of  liabilities,  it  is  not  one  but  represents  a 
part  of  the  assets.  The  lines  which  are  drawn  un- 
der the  columns  of  figures  should  be  in  red  ink  to 
indicate  the  end  of  a  period,  and  if  the  statement 
had  shown  a  deficit  in  place  of  a  balance,  the  defi- 
cit would  have  been  entered  in  the  first  column  in 
red  ink  to  call  attention  to  the  fact  that  it  was 
an  unusual  record,  and  although  it  appeared 
in  that  column,  it  did  not  represent  an  asset  but 
too  great  liabilities.  In  any  case  when  it  is  desir- 
able to  call  attention  to  an  entry,  the  use  of  red 
ink  helps. 

The  following  headings  are  suggestive  only. 
Many  housekeepers  will  prefer  to  combine  most  of 
the  food  columns  under  two  or  three  heads.  The 
headings  given  under  operating  may  not  prove  use- 
ful to  some,  others  will  wish  more  details.  Again, 
"Development"  must  be  subdivided  to  suit  the 
individual.  No  two  families  ever  require  exactly 
the  same  information  from  their  records,  hence  it 
is  simpler  to  select  sub-headings  suited  to  the  es- 
pecial needs  of  the  family  than  to  take  a  definite 
list.  Sub-headings  help  very  much  in  estimating 
amounts  for  the  budget,  they  may  later  be  com- 

94 


HOUSEHOLD  ACCOUNTING 


bined  for  the  accounts,  if  it  seems  desirable  to  save 
space  or  time  in  figuring  details. 

Suggestive  Headings  For  Household  Expenses 

U.  S.  Government  securities 
Life  insurance 
Bank  account 
Other  savings 

Rent 

Business  carfare 


SAVINGS 


SHELTER 


FOOD 


CLOTHING 


or,  when  the  house  is  owned 
Taxes 

Interest  on  mortgage 
Fire  insurance 
Repairs  to  house 
Business  carfare 

Meat  and  fish 

Eggs  and  cheese 

Butter,  cream  and  other  fats 

Milk 

Fruits    and    vegetables,  —  fresh, 

canned  or  dried 
Sugar,  jellies,  etc. 
Cereals  and  bread 
Condiments,  ice  and  beverages 
Meals  outside  the  house 

[Man 
1  Woman 
[Children 
95 


SPENDING  THE  FAMILY  INCOME 


OPERATING 


Light,  heat  and  water 

Laundry 

Service 

Telephone 

Repair  and  replacement  of  equip- 
ment 

House  and  cleaning  supplies 

Miscellaneous  operating 
stamps  and  stationery 
express 
flowers  for  house 

Fire  insurance  (furniture) 

Care  of  grounds 

Income  tax1 

Health 

Education 

New  equipment  (house) 

Recreation 

Religion 

Philanthropy 

Personal  allowances 

Social  life  and  personal  gifts 

Family  luxuries 

automobile 
,     social  clubs 

Suggestive  Headings  for  Individuals 

Savings 

Room 

Board  and  business  carfare 

1  This  may  be  entered  in  a  separate  column  next  to  savings. 


DEVELOPMENT 


HOUSEHOLD  ACCOUNTING 

Clothing  and  repair 
Operating 

personal  upkeep  (manicure,  hairdressing,  etc.) 
laundry 

express  and  postage,  stationery,  etc. 
Development 
Income  tax1 
Education 
Religion 
Philanthropy 
Recreation 

Social  life  and  personal  gifts 
Health 

New  equipment 
Business  equipment 
Personal  luxuries 

tobacco 

candy 

extra  meals 

flowers,  etc. 

Suggestive  Headings  for  a  Child 

Savings 
Clothing 
School  lunches 
Education 

special  classes 

music,  etc. 
Fun 
Gifts 

1  This  may  be  entered  in  a  separate  column  next  to  savings. 
97 


SPENDING  THE  FAMILY  INCOME 

To  Sum  Up 

I.  Make  a  budget  or  plan  for  spending. 

I 1 .  Choose  a  simple  system  of  accounting  which 
suits  your  needs. 

III.  Keep  as  close  to  the  budget  as  possible. 

IV.  Keep  the  accounts  accurately  enough  to 
give  the  material  needed  for  study. 

V.  Study  results  and  act  upon  them. 

To  do  this  successfully,  definite  time  must  be 
set  aside  for  it.  Odd-moment  accounting  is  sel- 
dom continuous  or  satisfactory. 

If  petty-cash  expenditures  are  hard  to  keep  a 
record  of,  estimate  the  probable  cost  of  such  inci- 
dentals as  carfares,  postage,  newspapers,  etc.,  and 
charge  this  amount  each  week  in  a  column  under 
Operating  Sundries. 

If  at  any  time  the  amount  spent  is  in  excess  of 
this  sum,  look  it  up,  if  possible,  but  do  not  worry 
about  it.  Pocket-money  expenditures  should  not 
be  a  burden.  When  the  amount  spent  in  the  week 
is  less  than  the  estimated  sum,  it  is  easily  adjusted 
by  charging  only  the  actual  expenditure  in  the  sun- 
dry column.  Never  charge  anything  not  in  this 
list  to  sundries. 

Save  slips  from  the  stores  to  check  charge  ac- 
counts and  make  up  cash  accounts. 

98 


CHAPTER  XI 
THE  GRAPHIC  CIRCLE 

When  a  budget  has  been  planned,  there  is  fre- 
quently a  feeling  that  it  would  be  more  satisfactory 
to  its  maker  if  he  could  compare  it  with  a  standard 
budget  and  know  whether  it  is  theoretically  cor- 
rect or  not.  There  are  various  standard  budgets 
based  upon  averages  obtained  from  studies  which 
have  been  made  in  many  homes;  such  averages 
can  never  allow  for  unusual  conditions,  in  fact, 
they  are  themselves  so  often  affected  by  unusual 
conditions  as  to  make  them  useless  for  an  average 
family.  A  recent  study  of  the  expense  accounts 
of  twelve  families  showed  that  an  average  of  5.2 
per  cent  of  their  total  expenditures  went  for  light 
and  heat,  but  of  the  twelve  families,  eight  spent 
five  per  cent  or  more,  while  the  other  four  spent 
less  than  four  per  cent.  The  average  amount 
spent  by  eleven  of  the  families  for  heat  and  light 
was  over  six  per  cent  of  their  total  expense,  show- 
ing that  one  very  high  or  one  very  low  record  may 
often  change  an  average  so  materially  as  to  make 

99 


SPENDING  THE  FAMILY  INCOME 

the  result  useless  for  application  to  normal  prob- 
lems. 

When  a  larger  group  of  results  is  averaged,  the 
figures  are  more  accurate  for  general  conclusions, 
but  hardly  of  assistance  in  solving  a  definite  prob- 
lem which  must  acknowledge  the  existence  of  es- 
pecial conditions. 

It  cannot  be  too  strongly  emphasized  that  every 
family  has  to  meet  its  own  difficulties  and  solve 
individual  problems  and  still  keep  as  perfect  a  bal- 
ance as  possible,  not  without  regard  to  the  conclu- 
sions of  others,  but  without  rejecting  solutions  just 
because  they  differ  from  accepted  standards.  The 
graphic  circle  described  here  has  over  and  over 
served  to  give  satisfaction  to  budget  makers  who 
were  vaguely  disturbed  because  unable  to  fit  their 
estimates  to  any  standard  budget. 

The  results  are  more  convincing  if  colored  — 
and  all  details  must  be  given  in  order  that  seeming 
lack  of  balance  may  be  accounted  for. 

If  special  conditions  do  not  account  for  a  lack  of 
balance,  then  the  budget  maker  should  assume  that 
something  is  wrong  with  his  estimates  and  start 
anew,  —  rebuilding  the  budget  with  the  idea  of 
restoring  proper  balance  and  spending  to  get  the 
best  returns. 

Draw  two  circles  on  the  same  center,  one  smaller 
100 


THE  GRAPHIC  CIRCLE 

than  the  other.  The  outer  circle  represents  the 
total  amount  of  the  income,  the  inner  circle  the 
savings  and  also  the  income  taxes,  if  they  are  to  be 
subtracted  with  the  savings  from  the  total  income. 
At  the  moment  of  starting  the  budget,  consider 
the  five  divisions  of  expenditures  as  of  equal  value 
and  divide  the  outer  circle  into  five  equal  parts,1 
each  representing  one  department  of  expense. 

For  convenience  in  comparison,  it  is  well  always 
to  divide  the  circle  in  the  same  way  and  employ 
the  same  divisions  and  colors  for  each  of  the  five 
groups.  Food  at  the  top  and  colored  red;  Shel- 
ter at  the  lower  right  colored  violet;  Clothing  at 
lower  left  colored  blue;  Operating  above  Clothing 
colored  yellow;  and  Development  above  Shelter 
colored  green.  Use  intense  colors  in  order  to  get 
sharp  impressions  when  analzying  the  results. 

The  total  income  minus  savings  and  the  income 
taxes,  divided  by  five,  equals  the  amount  to  be 
assigned  to  each  section. 

Taking  the  $2500  income  as  an  example,  with 
savings  and  taxes  of  $300,  the  result  will  be  $440 
for  each  section.  The  budget  plan  shows  that 
$680  is  required  for  food,  $360  for  shelter,  $480 
for  clothing,  $400  for  operating  and  $280  for  de- 
velopment.2 Food  evidently  will  draw  heavily  upon 

1  See  Chart  I,  page  100.    2  See  Chart  V,  page  108 
101 


SPENDING  THE  FAMILY  INCOME 

the  other  divisions  before  it  is  paid  for.  Shelter 
does  not  require  all  of  its  allotment  and  $82  taken 
from  that  section,  $40  from  operating,  and  $120 
from  development  will  provide  for  the  food  needs. 
Clothing  requires  $40  more  than  its  allotment  and 
it  must  be  taken  from  development. 

When  all  of  the  additions  and  subtractions  are 
indicated  both  by  figures  and  by  color  on  the  cir- 
cle, it  will  show  whether  any  one  section  is  giving 
up  more  than  it  should  to  any  other  group  of  expen- 
ditures. The  dotted  lines  which  mark  the  new  divi- 
sions must  be  put  in  carefully  if  the  lack  of  propor- 
tion is  to  be  shown  correctly.  When  a  section 
represents  $440,  and  forty  dollars  is  to  be  taken  for 
use  in  another  group  of  expenditures,  it  is  necessary 
to  divide  the  segment  evenly  into  halves,  quarters, 
and  eighths  and  then  an  eighth  into  thirds,  two  of 
which  will  indicate  approximately  the  right  space 
to  represent  the  forty  dollars. 

When  analyzing  and  judging  results,  it  is  neces- 
sary to  consider  the  special  conditions  governing 
the  family  making  the  budget.  For  example,  in 
the  budget  given  here,  the  food  cannot  be  reduced, 
as  both  boys  are  reaching  the  age  when  they  re- 
quire almost  as  much  food  as  the  father,  and  the 
position  of  the  father  in  the  schools  requires  that 
he  should  entertain  his  teachers. 

102 


THE  GRAPHIC  CIRCLE 

The  operating  expenses  cannot  be  reduced,  as  the 
mother's  lack  of  strength  requires  that  she  should 
have  assistance. 

The  clothing  exceeds  its  apportionment  because 
the  mother  is  unable  to  do  very  much  sewing,  and 
everything  must  be  purchased  ready-made  or  a 
seamstress  must  be  hired.  Development  rightly 
suffers  the  greatest  loss,  for  the  extra  money  spent 
for  operating  and  clothing  is  used  to  maintain  the 
health  of  the  mother.  If  this  were  lacking,  she 
would  be  obliged  to  spend  from  the  apportionment 
for  development  in  order  to  regain  her  strength, 
which  might  require  a  still  greater  share  of  the 
money  assigned  to  that  group. 

When  shelter  and  clothing  overrun  their  sec- 
tions, there  is  sure  to  be  difficulty  in  arranging  for 
sufficient  money  for  operating  and  development 
expenses.  If  operating  expenses  threaten  to  out- 
grow their  section  of  the  circle,  there  is  need  for  re- 
trenchment in  that  direction.  Food  will  usually 
exceed  its  fifth  where  the  income  is  small,  and  the 
budget  maker  who  can  reduce  clothing  and  shelter 
expenses  sufficiently  to  make  up  deficiencies  in  the 
food  section  is  able  to  obtain  greater  comfort  in 
operating  and  finer  spiritual  and  social  life  than  is 
possible  if  clothing  and  shelter  are  taking  too  large 
a  place  in  the  circle  of  expenditures. 

103 


SPENDING  THE  FAMILY  INCOME 

Regardless  of  how  much  experience  a  person  has 
had  in  budget  making,  study  of  the  colored  graphic 
circle  reveals  inequalities  and  unbalanced  appor- 
tionments which  are  not  always  apparent  if  figures 
alone  are  used. 

Each  family  has  its  own  problems  which  affect 
its  budget.  No  definite  sums  can  be  given  as 
right  or  wrong,  but  certain  general  rules  apply  in 
every  case,  and  budgets  will  vary  according  to  the 
needs  of  the  individual  family. 

The  following  charts  or  graphic  circles  show  how 
impossible  it  is  to  solve  a  budget  problem  with  defi- 
nite figures  unless  something  is  known  of  conditions. 

The  same  amount  of  money  must  be  spent  dif- 
ferently by  each  family  if  their  problems  are  to  be 
solved  wisely. 

The  first  chart  indicates  the  results  which  would 
follow  the  spending  of  an  income  if  the  five  divi- 
sions of  expenditures  were  considered  of  equal  im- 
portance. 

The  second  and  third  charts  show  difference  in 
results  because  of  changes  in  the  plan  for  spending; 
the  fourth  and  fifth  charts  are  different  because  of 
difference  in  environment,  education,  social  life 
and  business  conditions. 

Charts  II  and  III1  indicate  two  different  ways 

1  Pages  101  and  106. 
104 


THE  GRAPHIC   CIRCLE 

in  which  the  same  family  spent  the  same  size 
income  in  two  succeeding  years. 

The  first  year  they  hoped  to  save  two  hundred 
dollars,  but  each  month  they  spent  before  they 
saved.  At  the  end  of  the  year,  their  savings 
amounted  to  less  than  fifty  dollars.  After  study- 
ing in  a  " budget  class,"  they  adopted  a  new  rule, 
and  saved  twenty-five  dollars  each  month  before 
spending  anything.  At  the  end  of  the  year  they 
had  saved  fifty  dollars  in  addition  to  the  three 
hundred  dollars  which  they  had  planned.  This 
extra  money  was  saved  in  small  sums  after  they 
had  paid  their  bills  each  week. 

The  amount  needed  for  food  was  more  than  one 
fifth  of  the  whole.  It  was  therefore  necessary  to 
take  away  from  the  allowance  set  aside  for  two  of 
the  other  divisions,  and  the  colors  show  from 
which  sections  the  money  was  used.  The  red  in 
the  shelter  section  of  the  circle  shows  how  large 
a  part  of  that  money  was  used  for  food,  and  the 
other:  the  section  show  where  the  rest  of  the  money 
went.  For  example  — 

Total  income  $2100  -  $350  (Savings)  = 

=  $350  (amount  for  each  section) 
Food 

$350       (money  for  food) 
105 


SPENDING  THE  FAMILY  INCOME 

84       (  money  taken  from  shelter) 
226.50  (money  taken  from  operating) 


$660.50  (the   total    amount    finally    used    for 
food) 

The  section  marked  operating  shows  the  original 
amount  allowed  for  operating,  the  amounts  sub- 
tracted for  food,  and  for  development,  the  colors 
indicating  where  the  money  was  used. 

In  Chart  Number  II,  the  green  in  the  center 
circle  shows  how  the  automobile  or  something  else 
used  up  the  money  they  had  meant  to  save. 

These  budgets  are  not  meant  to  show  that  these 
people  spent  their  money  in  the  best  way,  or  that 
they  used  the  right  amount  for  each  thing,  but 
that  by  saving  before  they  spent  anything,  they  were 
able  to  increase  their  savings  more  than  seven 
times.  They  spent  the  rest  of  their  money  as  they 
thought  best  and  wise,  but  this  year  they  are 
spending  differently  and  hope  to  find  they  are 
getting  better  returns. 

It  must  be  remembered  that  each  family  budget 
is  an  individual  problem  and  must  be  treated  as 
such.  There  can  be  no  standardized  budget 
which  will  satisfy  every  one. 


106 


CHART  NUMBER  III 


OPERATING 

Gas $12.00 


FOOD 


Electric  Light. . . 

Water 

Laundry 

Service 

Supplies 

Repairs  and  Re- 
placements . . 

Telephone 

Misc.  Oper 

Postage 

Express 

House  Carfare 


15.00 


10.00 


37.00 
1.50 


Week.  . 
Month . 
Year.. 


DEVELOPMEI* 

Education $  ] 


...$660.50 


FOOD 

Milk $  26.50 

Fruit  &  Veg 74.00 

Groceries  &  Ice.  70.00 

Meat&  Eggs....  80.00 

Bread  &  Cereals  40.00 

Outside  Meals ...  370 . 00 


Health 

Church 

Philanthropy 

Recreation 

Vacation 

Gifts  (personal) . 

Equipment 

Personal    Allow- 


$660.50 


-FOOD 


Automobile 28 

$49 


CLOTHING 

Man $125.00 

Woman 125.00 

Children... 


SHELTER 

Rent $24' 

Carfare _2_ 

$26 


$1750 


=  $350 


TOTAL  INCOME,  $2100  00  -  $350  00 

5 

Number  in  family,  2 
Ages  of  children 

SPECIAL  CONDITIONS 
Occupation,  Salesman 
Health,  bills  increased,  vacation  omitted 
Location,  city,  two  room  kitchenette  apartment 
Dependents. 

Man's  meals  taken  outside. 

Savings  planned  and  made  when  rent  was  paid  each  month. 
Expenditure  for  automobile  confined  to  money  left  after  saving  had  been  made. 
YEAR— 1920 


OPERATING 
Coal... 
Wood... 
Light 31.00 


$144.00 


Water 

Laundry .... 

Service \ 

Supplies 1 

Repairs   and       1 

replacements  / 
Telephone  .... 
Misc.  Oper. .  . . 

Postage' 

Express .... 

House  Carfare 


24.00 
104.00 


50.00 

20.00 
27.00 


CHART  NUMBER  IV 

FOOD 
Week  ........   $12.30 

Month  ........      53.33 

Year  .........   640.00 

FOOD 

Milk  &  Cheese.  $  3.00 
Fruit  &Veg....  2.30 
Groceries  &  Ice.  2.10 
Meat  &  Eggs..  2.30 
Bread  &  Cereals  2.60 
Outside  Meals  .  ^12^0 


FOOD 


DEVELOPMENT 

Education $25.00 

Health 50.00 

Church 26.00 

Philanthropy...    26.00 

Recreation 52.00 

Vacation 

Gifts  (personal) .    21.00 

Equipment 

Personal    Allow- 
ances  

Automobile .... 

$200.00 


SHELTER 


Rent .  .  , 
Carfare. 


.$300.00 
.  60.00 
$360.00 


CLOTHING 

Man $120.00 

Woman 150.00 

Children 130.00 

$400.00 

$2000 

TOTAL  INCOME,  $2500.00  -  $500.00  =— —  =  $400 

5 

Number  in  family  5  —  three  children. 
Ages  of  children,  5  —  9  —  14. 
SPECIAL   CONDITIONS 

Occupation,  Factory  Worker 
Health 

Location,  small  manufacturing  town 
Dependents. 

Same  amount  of  income  and  same  number  in  family  as  Chart  V.     More  money  saved. 
Less  expense  necessary  for  professional  books  and  magazines. 

Difference  in  environment  and  social  life  made  possible  a  reduction  in  all  expenses  except 
shelter. 


THE  GRAPHIC  CIRCLE 

Two  Ways  of  Spending  an  Income  of  $2500 

The  difference  in  spending  was  due  to  difference 
in  occupation,  education  and  environment. 

The  first  plan  (Chart  Number  IV)  represents 
a  family  of  five  with  a  $2500  income  who  set 
aside  $500  for  savings  and  divide  the  remaining 
$2000  into  five  equal  parts  of  $400  each,  as  indi- 
cated by  the  heavy  black  lines.  This  family  finds 
that  they  need  more  than  $400  for  food  and  they 
redistribute  the  amount,  transferring  $200  of  the 
development  allowance  to  food,  and  as  they  can 
obtain  safe  shelter  for  their  family  for  $360  a 
year  they  are  enabled  to  take  $40  from  shelter 
which  they  will  also  spend  for  food,  leaving  the 
final  distribution  as  indicated  by  the  colors, 
—  $640  for  food;  $200  for  development;  $360  for 
rent;  $400  for  clothing  and  $400  for  operating. 

The  second  plan  (Chart  Number  V)  represents 
a  family  which,  because  of  difference  in  the  occupa- 
tion of  the  head  of  the  family  and  the  location  in 
which  business  requires  that  the  family  should 
live,  was  able  to  save  only  $300  from  its  $2500 
income,  leaving  $440  for  each  of  the  five  budget 
divisions.  This  family  found  that  it  needed  more 
than  $440  for  adequate  food  and  more  than  $440 
for  clothing.  There  was  no  expense  for  business 

107 


SPENDING  THE  FAMILY  INCOME 

carfare  and  they  were  able  to  keep  shelter  at  $360. 
Operating  required  all  of  the  $440,  as  they  used 
both  gas  and  electricity.  This  left  the  final  dis- 
tribution as  indicated  by  the  colors. 


108 


$144.00 

.  35.00 

.  36.00 

.  24.00 

.  104.00 

.  40.00 


OPERATING 

Wood 

Coal 

Gas 

Electric  Light 

Water 

Laundry 

Service 

Supplies 30.00 

Repairs  and  Re- 
placements . . 

Telephone 27.00 

Mieo.  Oper 

Postage 

Express 

House  Carfare 


CHART  NUMBER  V 

FOOD 

Week 

Month 

Year $680.00 

FOOD 

Milk 

Fruit  &  Veg 

Groceries  &  Ice  . 
Meat  &  Eggs.... 
Bread  &  Cereals. 
Outside  Meals... 


FOOD 


DEVELOPMENT 


Education.. 

Health 

Church 

Philanthropy 

Recreation 

Vacation 

Gifts  (personal)  . 

Equipment 

Personal    Allow- 
ances   

Automobile 


$  50.00 
50.00 
26.00 
26.00 
52.00 
11.00 

25.00 


$240.00 


CLOTHING 

Man $150.00 

Woman 175.00 

Children 155.00 

$480.00 


SHELTER 

Rent $360.00 

Carfare... 


TOTAL  INCOME,  $2500.00  -  $300.00  =  — °  =  $440 

5 

Number  in  family,  5  —  three  children. 
Ages  of  children,  4  —  9  —  13. 

SPECIAL  CONDITIONS 

Occupation,  School  teacher 

Health,  mother  not  strong 

Location,  small  manufacturing  town  —  no  carfare 

Dependents . 

Profession  and  social  life  of  teacher  necessitated  better  clothing  and  more  entertaining  and  more 
for  education  than  the  other  family. 


CHART  NUMBER  VI 


OPERATING 
Heat..  .......... 

Light  ........... 

Water  ........... 

Laundry 
Service  .......... 

Supplies  ......... 

Repairs  and  Re- 

placements .  . 

Telephone  ....... 

Misc.  Oper  ...... 

Postage..  . 


$  66.67 


House  Carfare 


60 


FOOD 

Week $ 

Month 

Year...  ...$442.00 


DEVELOPMENT 


FOOD 


CLOTHING 

Woman $344. 


Education . 
Health.... 

Church 

Philanthropy.... 

Recreation 

Vacation 

Gifts  (personal).. 

Equipment 

Personal    Allow- 
ances   

Automobile.  .  . 


$  75.00 
85.00 


52.00 
27.06 


10.00 


$249.06 


SHELTER 

/I208.00  vr. 
4.00**. 


Carfare 


75.52 


TOTAL  INCOME,  11600.00  -  $214.13  =  $1385-87  =  $277  17 

5 

Number  in  family 
Ages  of  children 
SPECIAL  CONDITIONS 
Occupation,  Teacher 
Health 

Location,  Suburban  town 
Dependents . 

Budget  planned  by  School  Board. 
Good  Room. 

No  small  operating  expenses  allowed. 

Vacation  must  be  spent  with  family  or  in  very  inexpensive  place. 
Nothing  allowed  for  giving  or  personal  equipment. 


CHAPTER   XII 
THE  INDIVIDUAL  INCOME 

The  methods  of  making  a  budget  for  an  indi- 
vidual vary  only  slightly  from  those  used  for  the 
family  budget.  The  principles  involved  are  the 
same;  the  development  and  application  of  the 
principles  will  vary  with  the  needs  and  character- 
istics of  the  individual  just  as  surely  as  the  family 
budgets  vary  with  the  environment,  education 
and  needs  of  the  families  involved. 

There  is,  however,  the  same  need  for  saving  as 
when  planning  a  family  budget.  The  man  or 
woman  not  a  part  of  a  family  must  provide  the 
necessities  of  life,  food,  clothing  and  shelter.  If 
living  conditions  are  comfortable,  there  will  be 
operating  expenses.  Laundry,  service,  stationery, 
postage,  toilet  articles,  repair  and  replacement  of 
equipment  are  all  necessary  operating  charges  for 
the  individual.  The  man  or  woman  who  boards 
has  usually  no  extra  expense  for  heat,  light  and 
water,  but  when,  as  frequently  happens,  the  shel- 
ter provided  is  an  apartment,  the  operating  divi- 

109 


SPENDING  THE  FAMILY  INCOME 

sion  acquires  these  items  familiar  to  the  same  di- 
vision of  the  family  budget.  The  selection  of 
shelter  must  be  based  upon  the  need  of  the  indi- 
vidual. Proximity  to  his  business  or  convenient 
transportation,  good  food,  air  and  sanitation,  con- 
genial social  environment  are  probably  more  nec- 
essary to  the  person  living  alone  than  to  the  mem- 
bers of  a  family  who  can  afford  to  sacrifice  social 
environment  and  even  proximity  to  business  be- 
cause of  the  compensations  of  family  life.  Fam- 
ily men  and  women  can  in  a  measure  control  the 
comfort  of  their  furnishings,  may  adapt  the  use 
of  their  rooms  to  special  needs;  but  the  " boarder" 
must  usually  abide  by  the  decisions  of  some  one 
else  and  is  called  upon  to  pay  according  to  the 
standards  of  another  for  the  comfort  which  he  finds 
essential  if  he  is  to  do  efficient  work.  A  good  food 
supply  and  comfortable  room  furnishings  are 
necessary  factors  in  the  choice  of  shelter  and  often 
compel  a  selection  which  is  more  costly  than  would 
otherwise  be  required.  It  must  not  be  forgotten 
either  that  the  cost  of  shelter  for  the  individual 
usually  includes  the  charges  for  bedding,  furnish- 
ings, light,  heat,  water  and  care.  While  these 
would  belong  in  another  division  in  budgeting  the 
family  income,  it  is  impossible  to  separate  them 
arbitrarily  from  the  cost  of  rent  for  the  individual 

110 


THE  INDIVIDUAL  INCOME 

and  they  must  therefore  be  included  under  shel- 
ter. 

The  standards  for  food  for  the  individual  vary 
with  the  sex  almost  as  much  as  with  the  income; 
but,  man  or  woman,  the  fact  should  be  kept  in 
mind  that  good  food,  adequate  in  amount  and 
nourishment,  must  be  provided  if  health  and  effi- 
ciency are  to  be  maintained.     That  the  individual 
who  boards  will  pay  more  in  actual  money  than 
the  separate  members  of  a  family  group  is  inevita- 
ble.    In  the  family  budget  the  cost  of  labor,  heat 
and  other  overhead  expenses  is  not  estimated  as  a 
part  of  the  cost  of  the  food.    In  the  boarding 
house  or  restaurant  all  overhead  charges  added  to 
the  cost  of  raw  materials  increase  the  price  so 
greatly  that  it  is  obviously  impossible  to  compare 
the  cost  of  food  for  the  individual  budget  with 
that  of  food  hi  the  family  budget  with  justice  to 
either.    This  must  be  taken  into  account  when 
considering  the  fact  that  the  operating  expenses 
for  the  individual  may  seem  to  be  less  than  those 
for  the  family  group,  while  food  and  shelter  are 
more.    As  it  is  obviously  impossible  to  separate 
any  portion  of  the  cost  of  food  and  shelter  and 
assign  it  to  operating,  it  remains  for  the  budget 
maker  to  take  this  into  consideration  when  distri- 
buting his  income  among  the  various  budget  items. 

Ill 


SPENDING  THE  FAMILY  INCOME 

The  self-supporting  individual  making  a  budget 
is  likely  to  have  a  different  clothing  problem  from 
that  of  the  man  or  woman  living  in  a  family.  The 
type  of  clothing  required  depends  upon  the  pro- 
fessional or  business  requirements  and  the  social 
life  which  is  possible  outside  of  business.  The 
cost  of  sewing  and  repairs  will  be  greater  than  when 
they  are  taken  care  of  in  the  home.  These  things 
must  be  considered  by  the  individual  and  meas- 
ured by  different  standards  than  those  used  for  a 
family  budget. 

The  individual  who  is  self-supporting  but  living 
at  home  will  sometimes  find  that  the  money  spent 
for  the  good  of  the  household,  though  not  con- 
sidered as  board,  amounts  to  as  much  as  if  board 
were  paid.  It  is  more  businesslike  to  make  a  defi- 
nite allowance  in  the  budget,  for  food  and  shelter, 
contributing  this  sum  to  the  family  expenses  in 
whatever  way  seems  most  desirable,  but  for  one's 
own  satisfaction  making  sure  that  it  is  an  adequate 
and  pretty  definite  sum.  If  this  of  necessity  ex- 
ceeds a  reasonable  amount  for  room  and  board, 
the  excess  is  to  be  considered  as  used  for  depend- 
ents. In  the  budget  of  the  individual,  the  fifth 
division  for  development  is  more  likely  to  be  in- 
sistent in  its  demands  than  operating.  Recrea- 
tion, education,  health,  new  equipment,  personal 

112 


THE  INDIVIDUAL  INCOME 

indulgences,  travel,  vacation,  gifts,  philanthropy, 
church  and  club  dues  are  as  necessary  to  the  indi- 
vidual as  to  the  family  and  sometimes  harder  for 
him  to  obtain  for  a  minimum  sum.  The  inexpen- 
sive forms  of  family  recreation,  education  and  va- 
cation are  frequently  impossible  for  the  individual. 
Equipment  which  can  be  used  and  enjoyed  by  the 
whole  family  will  cost  no  more  than  when  provided 
for  the  use  of  one  person,  though  there  are  none  of 
the  possibilities  of  reduction  in  proportional  cost 
which  can  be  obtained  by  purchasing  for  the  fam- 
ily. The  individual  pays  a  proportionately  higher 
price  for  food,  for  privacy  and  for  service  than  do 
members  of  a  group.  Sewing  supplies  purchased 
and  shared  by  a  family  at  small  individual  cost  be- 
come a  real  item  in  the  budget  of  one  person. 
The  " piece  bag"  of  the  family  often  saves  many 
items  which  must  be  met  by  the  budget  of  the  per- 
son living  alone.  The  self-supporting  daughter 
of  a  family  can  reduce  her  operating  expenses  by 
taking  advantage  of  her  freedom  in  the  home  to  do 
her  own  laundry  work,  but  this  is  quite  impossible 
for  the  same  girl  when  she  is  away  from  home  and 
buying  food  and  shelter  in  a  boarding  house  or 
rented  room,  where  her  movements  are  restricted 
to  the  space  for  which  she  pays. 

Men  and  women  living  at  home  are  seldom 
113 


SPENDING  THE  FAMILY  INCOME 

aware  of  the  extent  of  their  financial  privileges  un- 
til they  try  to  obtain  the  same  comfort  outside  for 
an  equal  expenditure  of  money.  The  individual, 
even  more  than  the  family  budget  maker,  is  likely 
to  fail  to  take  an  all-round  view  of  conditions;  if 
food,  clothing,  shelter  and  recreation  are  provided, 
he  is  often  satisfied  to  neglect  professional  equip- 
ment, education  and  sometimes  even  health  and 
saving.  The  necessary  steps  are  first  a  frank  sur- 
vey of  conditions:  income,  needs  and  desirable 
luxuries;  an  honest  statement  of  standards  with 
an  estimate  of  the  cost  of  living  up  to  them ;  a  com- 
parison of  this  total  with  the  total  income,  and  the 
elimination  of  items  which  cannot  be  provided 
from  the  income  or  the  addition  of  desirable  ex- 
penditure if  the  total  of  the  income  justifies  them. 
Planned  expenditures,  savings  made  before  spend- 
ing and  the  choice  of  purchases  most  worth-while 
rather  than  haphazard  buying  in  accord  with  the 
desire  of  the  moment  give  results  as  desirable  for 
the  individual  as  for  the  family. 

Careful  accounting  of  the  money  spent  so  that 
the  records  may  be  studied  and  a  better  plan  made 
for  the  next  year  is  a  necessity.  A  simple  method 
of  keeping  accounts,  a  definite  time  for  doing  the 
work,  a  sense  of  values,  and  a  determination  not  to 
let  the  budget  or  the  accounts  become  a  bugbear, 

114 


THE  INDIVIDUAL  INCOME 

but  to  make  them  both  of  real  assistance,  will  lead 
to  better,  richer  life,  with  a  businesslike  foundation 
which  will  insure  more  freedom  from  care  and  at 
the  same  time  help  provide  the  really  worth-while 
things  that  endure,  instead  of  those  which  gratify 
only  a  passing  fancy. 

In  making  the  budget,  it  is  well  to  select  the  five 
familiar  mam  headings,  separating  the  items  for 
board  and  room  accurately  if  possible,  but  if  not, 
making  such  an  arbitrary  division  as  seems  reason- 
able.   Make  a  list  of  all  items  likely  to  occur  and 
estimate  the  amount  of  money  necessary  to  meet 
each  item;  then  divide  them  under  the  five  head- 
ings.     These   headings  may   be  subdivided   ac- 
cording to  choice     for  instance,  one  person  will 
wish  to  include  all  estimates  for  development  un- 
der the  four  sub-headings  health,  education,  rec- 
reation and  benevolence,  while  another  would  di- 
vide development  into  health,  lectures,  books  and 
magazines,  classes,  social  life,  theater,  gifts,  va- 
cation, equipment,  church,  philanthropy,  automo- 
bile, travel;  the  choice  depending,  as  will  readily 
be  seen,  upon  the  size  of  income,  habits  and  en- 
vironment of  the  individuals  involved. 

It  will  be  much  less  difficult  to  make  the  esti- 
mates if  each  group  of  expenditures  is  considered 
not  by  the  year  but  by  days,  weeks,  months 

115 


SPENDING  THE  FAMILY  INCOME 

and  then  totaled  for  the  year.  One  may  not 
know  how  many  times  a  year  he  goes  to  a  play  or 
a  concert,  but  he  can  estimate  the  number  of  times 
if  he  reasons  in  this  fashion:  "I  do  not  go  every 
day,  or  every  week,  but  probably  once  hi  three 
weeks;  in  the  summer  I  do  not  go  to  the  theater, 
but  instead  I  do  something  which  costs  about  the 
same.  Altogether,  I  am  safe  in  estimating  eight- 
een times  a  year  for  that  kind  of  expenditure,  and 
if  I  spend  two  dollars  each  time,  I  must  allow 
thirty-six  dollars  in  my  budget. " 

As  with  the  family  budget,  it  is  desirable  to  make 
the  estimates  under  the  three  classifications:  fixed 
charges,  charges  possible  to  estimate  and  charges 
necessary  to  limit.  Such  an  item  as  the  above 
should  naturally  come  in  the  class  of  "  charges  nec- 
essary to  limit."  When  the  limit  has  been  reached, 
one  must  stop  indulging  in  that  form  of  recreation. 

When  all  the  fixed  charges,  estimates  and  limits 
are  determined,  if  the  total  income  has  been  ex- 
ceeded, first  reduce  the  operating  expenses  to  their 
minimum,  then  cut  down  the  least  important  ex- 
penditures for  development,  then  food  luxuries 
and  last,  the  cost  of  shelter;  but  remember  that 
it  costs  to  move  and  unless  the  charge  for  shelter 
is  very  much  too  large,  it  is  seldom  possible  to  ob- 
tain an  immediate  reduction  in  total  by  changing 

116 


THE  INDIVIDUAL  INCOME 

the  shelter.  The  graphic  circles  described  in 
Chapter  XI  will  be  helpful,  as  they  are  with  the 
family  budget.  No  one  of  the  five  divisions  should 
be  greatly  reduced  without  grave  consideration  of 
its  value  to  the  whole.  Food  and  shelter  will  most 
often  be  found  to  consume  more  than  their  fifth  of 
the  circle,  and  with  small  incomes  this  is  to  be  ex- 
pected, in  fact  is  usually  the  only  safe  way.  The 
individual,  like  the  family,  is  very  likely  to 
save  at  the  expense  of  development.  The  care- 
fully drawn  graphic  circle  will  indicate  just  how 
seriously  one  division  can  cut  into  another  and 
will  call  attention  to  the  dangers  when  figures 
might  be  accepted  as  safe  or  necessary.  If  one 
finds  that  any  section  is  suffering  from  the  insist- 
ence of  others,  it  is  well  to  answer  certain  questions 
very  honestly  before  attempting  to  change  the  es- 
timates. 

Do  the  estimates  for  food  and  shelter  exceed 
their  portions  of  the  circle? 

Can  these  be  reduced  and  health  and  reasonable 
comfort  be  maintained? 

If  not,  what  about  clothing?  Is  that  estimated 
on  a  reasonable  basis?  Will  my  clothes  as  planned 
consume  too  large  a  portion  of  my  time  in  prepa- 
ration and  care?  Could  I  reduce  the  amount  to 
be  spent  on  them  if  I  used  some  of  my  spare  time 

117 


SPENDING  THE  FAMILY  INCOME 

for  sewing?  Can  I  use  strength  for  such  sewing 
and  not  have  my  health  suffer? 

Are  my  operating  costs  in  excess  of  what  they 
need  be?  How  can  I  reduce  them  without  undue 
demands  upon  time  and  strength?  Operating 
charges  are  easily  cut  down  in  theory,  amenable  to 
discipline  in  fact,  but  need  constant  attention  or 
they  run  away  with  much  of  one's  surplus. 

The  budget  maker  should  see  that  his  plan  for 
spending  provides  for  the  development  of  the  spir- 
itual, mental,  social  and  physical  sides  of  his  life. 
The  development  of  these  phases  of  life  need  not 
involve  the  expenditure  of  very  much  money,  but 
the  amount  necessary  will  vary  with  the  individ- 
ual, just  as  his  choice  of  the  form  of  development 
will  vary.  One  person  may  get  his  mental  devel- 
opment from  attendance  at  the  movies,  while  a 
second  will  be  satisfied  only  by  the  best  Shakes- 
pearian plays.  For  one  the  desire  for  social  life 
will  be  gratified  by  church  activities  and  another 
will  fulfill  his  social  obligations  by  a  friendly  chat 
with  his  neighbors  at  the  corner  store.  The  way 
in  which  these  things  are  obtained  will  depend 
upon  the  choice  of  the  individual,  and  the  expendi- 
ture of  money  will  vary  accordingly.  The  budget 
changes  with  the  mental  growth  of  the  budget 
maker.  The  individual  often  fails  to  give  due 

118 


OPERATING 

Heat 

Light 

Water 

Laundry 66 . 67 

Service 

Toilet  Supplies ..       8.00 
Repairs   and    Re- 
placements. . 

Telephone 12.00 

Misc.  Oper 

Postage 12.00 

Express 

House  Carfare . . 


CHART  NUMBER  VII 

FOOD 

Week $  10.00 

Month 

Year...  ..  520.00 


FOOD 


CLOTHING 
Woman $305.28 


DEVELOPMENT 

Education $  50.00 

Health 60.00 

Church 15.00 

Philanthropy ....     10 . 00 

Recreation 26.00 

Vacation 55.76 

Gifts  (personal). 

Equipment 25.00 

Personal    Allow- 
ances       7.30 

Automobile. . . 


$249.06 


SHELTER 

I  $130. 00    yr. 
1       2.50wk. 
Carfare...  82.84 


"Rent 


TOTAL  INCOME,  $1600.00  -  $214.13  = 


07 


=  $277.17 


SPECIAL  CONDITIONS 

Occupation,  Teacher 

Health 

Location,  Suburban  town 

Dependents 

Same  salary  as  for  Chart  VI. 
Budget  rearranged. 

Roommate  necessary  in  order  to  pay  for  better  board. 
Small  operating  expenses  allowed  and  clothing  reduced. 
Giving  and  personal  equipment  reduce  amount  for  health  and  education. 
Recreation  lower,money  used  for  better  vacation. 


CHART  NUMBER  VIII 


OPERATING 
Personal  Upkeep  $10.00 

Laundry 70.00 

Toilet  Supplies.  .     10.00 
Stationary,  . 
Postage  .  .  . 


10.00 


$100.00 


EDUCATION 

Tuition $200.00 

Books  &  Supplies  40 . 00 
Transportation . .  25 . 00 
Extra  Fees 40.00 

$305.00 


CHOICE 

Dues $  10.00 

College  Paper  ..  5.00 

Gifts 20.00 

Theatre  etc 25.00 

Church 25.00 

Philanthropy  ...  10.00 

Extras...             .  10.00 


CLOTHING 

$205.00 


$105.00 


SHELTER 
Board  &  Rooms. $310. 00 


TOTAL  INCOME,  $1077.00  -  $52.00  = 


=  $205 


The  amount  necessary  for  board  and  room  and  for  tuition  varies  with  the  school  selected. 
Operating  expense,  cost  of  clothing  and  choice  are  more  directly  within  the  control  of  the  student. 
These  figures  are  given  to  indicate  the  method  of  work.    They  are  taken  from  an  actual  budget  but 
without  any  thought  that  they  are  applicable,  as  they  stand,  to  another  problem. 


THE  INDIVIDUAL  INCOME 

/alue  to  play,  eliminating  it  altogether  in  some 
;ases  or  devoting  too  much  time  to  it  in  others. 
The  danger  that  one  group  of  expenditures  may  be 
neglected  for  others  will  be  obviated  when  all  are 
oonsidered  together  and  values  compared.  By 
the  wise  distribution  of  money  apportioned  to  each 
division,  it  is  usually  possible  to  avoid  cutting  any 
one  division  below  a  reasonable  minimum. 

Advice  to  the  individual  then,  as  to  the  family 
Budget  maker,  is: 

Make  a  budget  from  carefully  worked-out  es- 
timates. 

Choose  a  simple  plan  for  accounts. 

Stick  to  the  budget. 

Keep  the  accounts. 

Study  the  accounts  and  learn  to  recognize  the 
ieaks. 

Compare  the  budget  and  the  totals  of  the  ac- 
counts. 

Build  a  new  budget  on  the  basis  of  the  knowl- 
edge gained. 

Make  this  year's  accounts  the  link  between  this 
year's  problem  and  next  year's  ease  of  mind. 

No  budget  is  of  use  unless  it  is  followed. 

Time  must  be  given  to  both  the  making  and  the 
living  of  a  budget,  if  the  results  are  to  be  satisfac- 
tory and  of  value,  making  possible  a  richer  life. 

119 


CHAPTER  XIII 
THE  CHILD'S   INCOME 

It  is  our  custom  to  consider  that  the  family  in- 
come is  produced  by  the  mental  or  manual  labor 
of  the  man  of  the  family,  but  it  is  frequently  aug- 
mented in  fact,  if  not  in  theory,  by  the  efforts  of 
the  other  members.  If  we  admit  this,  we  should 
also  acknowledge  the  desirability  of  dividing  the 
responsibility  connected  «with  spending  the  income. 

There  are  three  types  of  family  finance  under 
which  all  variations  may  be  grouped.  In  one  the 
father  controls  the  use  of  the  income,  giving  or 
withholding,  as  suits  his  judgment  or  moods.  In 
the  second  type  the  mother  controls  the  purse, 
makes  purchases  and  either  economizes,  wastes  or 
spends  judiciously,  as  may  be.  In  the  third  type, 
the  income  is  considered  as  a  family  fund,  each 
member  of  the  family  entitled  to  his  just  share 
with  distinct  obligations  in  regard  to  its  wise  use 
and  with  definite  responsibilities  as  to  the  produc- 
tion, extension  or  saving  of  the  income  itself. 

It  is  not  desirable  here  to  enter  into  a  discussion 
120 


THE  CHILD'S  INCOME 

of  the  merits  of  these  methods  of  family  finance, 
but  the  following  conclusions  may  be  of  value  to 
parents  who  are  trying  to  solve  the  problem  in  the 
best  way,  with  justice  to  themselves  and  their 
children.  There  will  be  many  who  will  disagree 
with  me;  there  will  be  others  who  will  agree  un- 
willingly, because  loath  to  make  the  effort  neces- 
sary to  carry  out  the  suggestions. 

Aside  from  the  financial  independence  which 
they  gain,  children  who  have  been  taught  at  home 
something  of  the  responsibilities  attendant  upon 
the  wise  spending  of  their  money  prove  to  be  bet- 
ter able  to  direct  their  own  actions  in  other  ways. 
The  aim  of  each  home  where  there  are  children  is 
to  create  the  beginnings  of  other  homes.  The 
children  should  therefore  receive  the  training  and 
experience  which  will  later  make  it  possible  for 
them  to  assume  successfully  positions  as  heads  of 
households.  This  should  involve  experience  in  the 
spending  and  perhaps  in  the  earning  of  money,  in 
order  that  they  may  realize  not  only  its  possibilities 
but  its  limitations.  Experience  alone  gives  ability 
to  judge  of  the  real  value  of  things  purchased  and 
power  to  discriminate  between  the  worth-while 
and  the  useless. 

Joy  in  spending  for  spending' s  sake  appears  to 
be  inherent  in  most  children.  Joy  in  spending  be- 

121 


SPENDING  THE  FAMILY  INCOME 

cause  of  the  value  of  the  return  is  usually  the  result 
of  having  lived  through  periods  of  famine  which 
have  followed  reckless  spending.  To  the  thought- 
less child,  food  and  clothing,  the  conveniences  and 
comforts  of  the  home,  even  the  home  itself  seem  to 
be  a  part  of  the  day's  routine,  like  the  air  and  the 
sun.  He  does  not  realize  that  money  comes  only 
as  a  result  of  the  expenditure  of  strength  and 
energy  on  the  part  of  some  individual,  and  that 
the  goods  purchased  with  it  should  be  of  sufficient 
worth  to  justify  the  spending  of  that  part  of  some 
one's  life  which  is  represented  by  the  money.  In 
the  family  with  a  comfortable  income,  the  everyday 
things  of  life  appear,  are  used,  and  the  supply  re- 
newed ;  to  the  child  this  occurs  without  effort,  ex- 
cept that  which  is  involved  in  a  telephone  message, 
a  walk  to  the  store  or  a  request  to  father.  Provid- 
ing even  the  everyday  necessities  means  the  ex- 
penditure of  life  itself,  and  this  should  be  taught 
each  child  while  in  the  home.  Many  parents  allow 
their  children  to  continue  in  this  belief  that  all  nec- 
essities will  be  provided  as  a  matter  of  course  until 
the  moment  when  circumstances  throw  the  child 
upon  his  own  resources.  Then  the  world  wonders 
at  his  failure  to  see  clearly,  to  measure  values  accur- 
ately and  to  play  fair  in  the  game  of  life.  The  cir- 
cumstances which  bring  about  the  change  may  be 

122 


THE   CHILD'S   INCOME 

financial  difficulties  in  the  home,  different  school 
life,  the  beginning  of  a  business  career  or  marriage. 
The  cause  does  not  alter  the  result,  and  the  child, 
hitherto  carefully  kept  from  all  real  knowledge  of 
the  difficulties  connected  with  the  wise  spending 
of  money,  is  suddenly  faced  with  problems  so  com- 
plex that  one  wonders  that  there  are  not  more  who 
fail  to  solve  them  correctly. 

It  is  a  fact  that  to  many  children  an  allowance 
"is  the  money  which  comes  regularly."  The  rest 
of  their  money  they  get  for  the  asking,  as  one  of 
them  naively  expressed  it,  "Of  course,  if  I  can't 
make  that  go  through  the  month,  and  I  never  can, 
father  gives  me  more.  Extras  I  get  from  mother." 
She  was  much  surprised  when  asked  if  she  had  ever 
tried  to  make  it  last  through  the  month.  Why 
make  such  an  attempt  when  no  one  expected  it  of 
her !  Too  many  children  feel  that  when  the  money 
in  hand  is  gone,  more  may  be  had  for  the  asking; 
that  when  their  allowance  is  spent,  they  may  over- 
draw, and  that  father  and  mother  are  a  source  of 
supply,  the  limit  of  which  is  dependent  only  upon 
their  mood  at  the  moment,  or  the  method  of  ap- 
proach in  time  of  need.  Such  an  attitude  toward 
money  breeds  selfishness;  it  tends  to  make  a  child 
thoughtless  and  in  the  end  helpless  in  the  face  of 
actual  necessity.  The  familiar  argument,  "My 

123 


SPENDING  THE  FAMILY  INCOME 

child  will  never  need  for  money,"  will  not  excuse 
the  negligence  of  such  parents.  The  fact  remains 
that  many  men  and  women  have  lived  through 
helpless,  hopeless  years  of  financial  anxiety  because 
their  parents  fondly  believed  that  they  would  be 
protected  from  all  money  difficulties.  How  much 
more  sure  of  happiness  are  the  children  taught  by 
their  parents  to  spend  wisely  and  to  conduct  their 
affairs  in  a  businesslike  way. 

Money  is  of  value  only  because  of  its  purchasing 
power,  and  that  power  should  be  used  to  the  best 
advantage  and  for  "  things  "  which  are  good.  The 
knowledge  that  money  may  buy  happiness,  health, 
education,  comfort,  luxury  or  equipment  for  the 
individual;  or  development  of  resources,  industry 
or  health  for  the  community,  and  that  the  spender 
has  a  duty  toward  the  world  as  well  as  toward  him- 
self should  be  given  to  each  child. 

We  are  all  f amiliar  with  families  where  some  one 
member  absorbs  more  than  his  just  share  of  the  in- 
come. This  may  be  excused  if  it  is  for  a  short  time, 
in  order  to  meet  an  emergency  caused  by  the  de- 
mands of  illness,  education  or  business,  but  when 
such  unequal  division  of  the  income  continues  be- 
yond the  emergency,  it  is  usually  because  the  par- 
ents are  thoughtless  and  have  allowed  themselves 
or  their  children  to  become  selfish. 

124 


THE  CHILD'S  INCOME 

The  child  who  understands  something  of  the  ef- 
fort which  it  has  required  to  produce  the  family  in- 
come and  is  familiar  with  the  number  and  scope  of 
the  demands  upon  that  income  will  be  far  less  in- 
clined to  make  selfish  or  thoughtless  requests  for 
money  than  the  child  whose  only  idea  of  money  is 
that  his  father  has  plenty  and  will  give  it  to  him 
if  he  asks  at  the  right  moment. 

In  every  home  two  business  principles  should  be 
emphasized;  the  expenditure  must  not  be  greater 
than  the  return,  and  the  expenditure  should  not  be 
more  than  the  ability  to  pay.  The  teacher  of  chil- 
dren from  families  with  comfortable  incomes  is 
often  appalled  by  the  ignorance  of  the  children  in 
regard  to  the  value  of  money,  of  personal  belong- 
ings and  of  the  property  of  others.  Last  winter 
a  girl  of  fifteen  was  heard  to  say,  "I  have  carried 
this  gold  piece  around  all  day.  I  might  as  well 
spend  it  here  as  anywhere.  How  much  are  your 
watch  bracelets?. . .  ."No,  I  don't  especially  need 
one,  but  I  might  as  well  spend  the  money  now.  It 
must  be  spent. "  Children  should  be  taught  that 
to  spend  less  than  they  have  is  a  virtue  and  not  a 
fault. 

Parents  have  many  excuses  for  not  entering  se- 
riously upon  the  question  of  children's  finances, 
and  following  are  some  of  the  most  frequently  re- 

125 


SPENDING  THE  FAMILY  INCOME 

peated  objections  which  are  heard  from  parents 
who  feel  that  they  are  doing  their  best  for  their 
children: 

"Children  do  not  realize  the  value  of  money." 
Childhood  is  their  time  for  learning  to  realize. 
They  should  be  given  a  definite  sum  from  which 
they  must  provide  for  their  needs  and  pleasures, 
and  then  held  to  their  responsibility  in  providing 
these  things. 

"  Children  do  not  know  how  to  plan  and  the 
money  will  be  spent  unwisely."  There  is  no  bet- 
ter tune  to  learn  than  while  in  their  parent's  home. 
Advice  should  be  offered  freely,  but  the  decision 
should  be  left  to  the  child  and  the  child  should  suf- 
fer the  penalty  of  a  wrong  decision.  To  be  sure, 
other  members  of  the  family  sometimes  suffer 
with  the  child,  but  that  helps  teach  another 
lesson. 

"It  is  easier  for  me  to  make  the  purchases  and 
pay  the  bills,  and  my  judgment  is  better."  It 
would  be  easier  to  let  some  one  else  have  the  chil- 
dren and  bring  them  up,  but  since  the  parents  have 
chosen  to  assume  the  responsibility,  the  question 
should  not  be  one  of  ease  for  them  but  of  the  best 
development  of  the  child. 

"I  have  so  little  money  I  can't  afford  to  let  him 
make  mistakes."  One  mistake  will  not  be  fatal, 

126 


THE  CHILD'S  INCOME 

even  though  it  means  that  the  child  goes  without 
some  article  which  is,  according  to  the  parents' 
idea,  a  necessity.  The  subsequent  self-denial  or 
embarrassment  will  teach  their  lessons  far  more 
effectively  than  any  number  of  wise  purchases 
which  a  parent  makes  for  a  child.  If  the  necessary 
stipulations  are  made  as  to  suitability  for  weather, 
so  as  to  protect  health,  the  choice  as  to  style,  color 
and  quality  may  well  be  left  to  the  child,  after  the 
question  has  been  thoroughly  discussed.  There 
will  come  a  time  when  this  discussion  will  not  be 
necessary.  In  the  beginning  it  is.  As  well  set  a 
carpenter  to  build  a  house  without  knowledge  of 
your  needs  as  to  ask  a  child  to  buy  clothes  with- 
out discussion  of  the  conditions  which  must  be 
met. 

"  While  they  spend  my  money,  I  mean  to  direct 
the  spending."  The  everlasting  ego  which  claims 
all  virtue  and  is  not  willing  to  share  anything  of 
its  advantages  except  with  all  credit  for  the  re- 
sult! 

"I  wish  my  family  to  be  dependent  upon  me." 
Again  the  egoist  who  enjoys  his  benevolence  and 
feels,  like  the  slave-owner  of  old, — "  These  are  my 
people.  I  can  force  them  to  do  my  will  because  I 
hold  the  power  of  life  and  death. " 

"I  am  willing  to  give  my  children  an  allowance, 
127 


SPENDING  THE  FAMILY  INCOME 

but  $ a  year  is  too  large  a  sum  for  any  boy  or 

girl  to  spend,  and  they  will  not  be  satisfied  with 
less."  That  father  or  mother  should  estimate 
very  carefully  what  it  has  cost  to  provide  for  the 
child  during  previous  years.  An  inexperienced 
child  should  not  be  asked  to  live  on  less  than  his 
parents,  with  their  experience,  have  required  for 
the  child's  needs. 

"My  children  will  spend  foolishly  if  I  give  it  to 
them  to  spend. "  Not  many  times,  if  no  additions 
are  made  to  the  original  amount.  If,  when  they 
have  spent  foolishly,  children  must  go  without, 
they  will  soon  learn  to  spend  more  wisely. 

"It  costs  me  more  in  the  end,  because  there  are 
so  many  things  I  want  them  to  have  that  I  spend 
a  lot  extra  for  them."  That  is  then  the  fault  of  the 
parents  and  not  of  the  children,  and  it  deprives 
children  of  the  opportunity  to  form  character  by 
choosing  and  acquiring  the  things  they  think 
worth-while. 

"If  I  give  them  an  allowance,  they  spend  it  for 
useless  things,  and  their  clothes  are  not  up  to  the 
standards  which  I  have  always  set  for  them." 
With  experience  they  will  outgrow  that,  provided 
the  allowance  is  made  large  enough  so  that  they 
can  maintain  the  old  standards;  and  if  by  chance 
they  grow  to  feel  that  some  other  things  are  more 

128 


THE  CHILD'S   INCOME 

worth-while  than  "clothes  according  to  the  family 
standard, "  there  is  then  opportunity  to  discuss  and 
compare  standards,  always  remembering  that 
children  have  a  right  to  their  individuality,  and 
that  so  long  as  they  are  willing  or  compelled  to 
consider  the  prejudices  and  preferences  of  their 
parents,  they  are  entitled  to  opportunity  to  choose 
in  directions  where  the  welfare  of  the  family  or  of 
society  will  not  be  affected. 

The  following  rules  for  children's  finances  are 
not  new  but  are  compiled  from  many  sources : 

Each  child  should  know  what  it  costs  to  live, 
and  should  contribute  toward  his  share  by  work 
or  by  saving.  Include  the  older  children  in  the 
family  council.  Let  all  share  in  the  family  efforts 
to  save  and  to  spend  wisely. 

Careful  estimate  of  the  necessities  in  clothing, 
education  and  recreation  should  be  made,  and  the 
child  should  be  given  an  income  based  upon  his 
needs  and  the  parents'  ability  to  provide  for  them. 
This  sum  should  not  be  increased  except  when  both 
parents  and  child  realize  that  it  is  no  longer 
large  enough  to  meet  the  needs  of  the  child's 
life. 

A  plan  for  spending  should  be  made  by  the  child, 
discussed  with  the  parents,  and  advice  given  as  to 
special  purchases. 

129 


SPENDING  THE  FAMILY  INCOME 

An  account  of  expenditures  should  be  kept  and 
discussed  with  the  parents,  and  later  plans  should 
be  based  upon  this  study. 

Final  decisions  should  be  made  by  the  child. 
Deficits  should  not  be  met  by  the  parents. 

The  reasons  for  saving,  giving,  and  education 
should  be  emphasized  in  every  discussion,  or  the 
child  will  grow  up  with  the  idea  that  personal  ex- 
penditures for  clothing  and  pleasure  are  his  only 
financial  responsibilities. 

Responsibility  should  begin  with  small  things 
and  increase  with  the  growth  of  the  child.  Re- 
sponsibility and  education  should  be  parallel. 

Give  a  child  opportunity  to  add  to  his  income 
by  earning.  Do  not  pay  for  every  service,  but  if 
there  is  some  thing  to  be  done  which  otherwise 
must  be  paid  for,  hire  the  child  to  do  it  and  pay 
according  to  the  quality  of  the  work  done. 

Teach  that  care  of  property  saves  money  as  defi- 
nitely as  going  without  an  ice-cream  cone  or  after- 
noon tea. 

Teach  that  money  saved  should  be  put  to  work; 
that  going  without  marbles  in  order  to  spend  the 
money  for  soda  is  not  really  saving.  Saving 
should  mean  putting  money  where  it  will  accumu- 
late until  it  develops  power  to  purchase  something 
more  worth-while  in  the  future. 

130 


THE  CHILD'S  INCOME 

Teach  every  child  to  plan  so   that   he  may 

spend 

Something  for  saving; 
Something  for  giving; 
Something  for  needs; 
Something  for  growth; 
Something  for  play. 


131 


CHAPTER  XIV 
STUDENT'S  INCOME 

It  is  exceedingly  desirable  that  the  student,  as 
well  as  the  business  woman,  should  begin  the  ex- 
penditure of  her  income  with  saving.  Students 
who  feel  that  their  incomes  are  so  small  that  they 
cannot  save  on  them  should  realize  that  they  are 
in  school  for  the  purpose  of  receiving  education  to 
fit  them  for  living  —  that  living  in  the  world  will 
require  that  they  handle  money  —  that  without 
experience  hi  careful  and  intelligent  spending  of 
money  they  will  go  into  the  world  unprepared  to 
meet  its  problems  and  will  spend  time  later  in 
gaining  necessary  experience  when  they  should 
be  able  to  avail  themselves  of  knowledge  gained 
during  school  life.  If,  by  force  of  circumstances, 
every  cent  available  mmt  be  spent,  the  habit  of 
saving  may  be  acquired  by  putting  aside  a  definite 
amount  each  week  toward  some  fixed  charge  which 
will  come  due  at  a  future  date.  The  habit,  once 
gained,  of  spending  to  the  limit  of  one's  possibility 
is  hard  to  break,  and  instead  of  burdening  one's 
self  with  a  bad  habit  which  must  be  broken,  it  is 

132 


STUDENT'S  INCOME 

well  for  the  student  to  acquire  a  good  habit  which 
will  make  living  easier  and  more  successful  with 
far  more  immediate  opportunities  to  be  of  real  ser- 
vice in  the  world. 

Students  who  are  living  on  very  small  incomes 
will  find  that  planned  expenditures  bring  better 
returns  than  haphazard  or  hand-to-mouth  pur- 
chases. No  matter  how  small  the  student's  in- 
come, if  it  is  possible  to  make  it  cover  expenses  at 
all,  it  will  cover  them  more  fully  if  a  definite  plan 
is  made. 

When  the  spending  plan,  or  budget,  has  been 
made  a  graphic  circle  will  show  him  more  clearly 
than  figures  whether  he  has  apportioned  his 
money  wisely  or  not. 

When  all  of  his  expenses  are  paid  by  the  student, 
the  red  division  of  the  circle1  will  represent  the 
money  paid  for  education;  the  violet  division, 
the  money  spent  for  board;  the  yellow  division, 
money  spent  for  operating;  the  blue,  for  cloth- 
ing; and  the  green  the  money  spent  for  de- 
velopment. 

When  the  board,  tuition  and  doctor's  bills  are 
paid  by  other  people  and  not  taken  out  of  the  al- 
lowance of  the  student,  the  circle  should  be  divided 
into  five  equal  parts  as  before,  one  part  represent- 

1  See  Chart,  VIII  page  119. 
133 


SPENDING  THE  FAMILY  INCOME 

ing  education,  one  part  operating,  two  parts  cloth- 
ing and  one  part  choice  or  development. 

Board  includes  the  amount  spent  for  room  and 
meals. 

Education  includes  expenditures  for  tuition  and 
extra  class  fees,  when  paid  by  the  student,  music, 
etc.,  books,  supplies  and  transportation  to  and 
from  school. 

Clothing  includes  all  new  ready-made  clothing, 
all  materials,  cost  of  making  and  cleansing  and  re- 
pairing. 

Operating  includes  personal  upkeep  (toilet  sup- 
plies, hairdressing,  etc.),  postage,  stationery,  laun- 
dry and  miscellaneous  carfares. 

Development  includes  expenditures  for  religion, 
philanthropy,  health,  social  life,  dues  and  personal 
extras. 

Social  life  includes  expenditures  for  recreation, 
entertainment,  theater,  " functions"  and  personal 
gifts. 

Dues  includes  club  and  society  dues,  contribu- 
tions to  school  projects,  etc. 

Health  includes  doctor's,  dentist's  or  nurse's 
fees,  medicine  and  also  the  cost  of  preventative 
measures. 

Extras  includes  extra  food,  candy,  flowers,  per- 
sonal equipment,  etc. 

134 


STUDENT'S   INCOME 

It  will  not  be  possible  for  most  students  to  divide 
their  income  into  five  equal  parts  and  keep  to  that 
definite  distribution,  but  such  a  division  gives  a 
starting  point  from  which  changes  may  be  made. 
As  a  preliminary  step  it  is  well  for  the  student  to 
make  a  list  of  all  the  fixed  charges  against  the  in- 
come. By  fixed  charges  is  meant  regular  fees  and 
definite  demands,  such  as  tuition  or  other  class 
fees  and  transportation  to  and  from  school,  the 
amount  of  which  is  fixed  at  the  beginning  of  the 
school  year  and  which  will  be  unlikely  to  change 
with  the  progress  of  the  term. 

A  second  list  should  include  charges  which  it  is 
possible  to  estimate,  such  as  laundry,  contribution 
to  school  projects,  regular  expenditures  for  mani- 
cures or  hairdressing. 

A  third  list  will  include  charges  which  it  is  nec- 
essary to  limit,  that  is,  the  amount  which  may  be 
spent  for  recreation,  entertainment,  personal  gifts 
and  personal  extras,  etc. 

When  the  estimates  for  all  three  lists  are  made, 
they  should  be  separated  into  the  proper  groups 
and  very  carefully  checked  up  with  the  fifth  of  the 
income  allowed  for  that  group.  It  will  be  found 
that  some  groups  require  more  than  their  fifth  and 
some  groups  less,  but  if  the  total  of  the  operating 
group  and  the  items  under  choice  exceed  the 

135 


SPENDING  THE  FAMILY  INCOME 

amounts  allowed,  a  mistake  is  being  made  in  plan- 
ning. 

It  is  quite  probable  that  the  allowance  for  cloth- 
ing will  exceed  the  fifth  of  the  whole,  and  when 
board  and  tuition  are  not  paid  for  by  the  student, 
clothing  expenditure  is  likely  to  exceed  two  fifths, 
especially  if  the  allowance  is  a  small  one.  A 
thoughtful  examination  of  the  circle  will  show 
whether  it  represents  well-balanced  expenditures, 
and  careful  following  out  of  the  budget  plan,  with 
study  of  the  results  as  shown  by  the  accounts,  will 
soon  teach  a  student  to  recognize  poor  budgeting 
and  to  take  advantage  of  the  mistakes  of  one  year 
to  improve  expenditures  for  the  next.  A  poor 
budget  is  better  than  none  and  a  second  budget 
which  is  not  an  improvement  upon  the  previous 
one  shows  that  the  person  making  it  has  not  ap- 
proached the  matter  with  serious  intention  to 
spend  wisely  and  to  take  advantage  of  opportunity 
for  progress. 


136 


137 


SPENDING  THE  FAMILY  INCOME 

The^Use  of  the  Loose-Leaf  Distribution  Sheet 
and  Account  Book  for  Students 

Use  the  top  space  for  General  Headings;  the 
unlined  space  for  sub-headings  under  which  all 
expenditures  are  to  be  distributed.  At  the  bottom 
of  the  page  reserve  three  lines  for 

Totals  - 

Planned  - 

Difference  - 

If  bills  are  paid  by  check,  write  in  the  broad 
column  the  name  of  the  person  to  whom  the  check 
is  drawn,  with  date  and  check  number.  If  paid 
in  cash,  keep  a  record  in  a  small  cash  book,  and 
each  week  transfer  the  totals  for  the  week  to  the 
distribution  sheet,  or  enter  each  expenditure  di- 
rectly in  the  book,  distributing  it  at  once.  To 
prove  the  account,  the  sum  of  the  totals  of  all  the 
distribution  columns  should  equal  the  sum  of  the 
total  expenditures,  while  the  total  expenditures 
plus  the  balance  in  the  bank  should  equal  the  total 
received.  When  the  budget  estimates  are  written 
at  the  foot  of  each  column  on  the  line  below  the 
totals  and  the  two  are  compared  and  the  difference 
noted  on  the  next  line,  the  student  can  easily  esti- 
mate the  amount  of  surplus  which  exists  in  any 
one  division  to  cover  later  necessary  expenditures. 

138 


STUDENT'S  INCOME 

The  headings  used  are  suggestive  only  and  may 
not  all  prove  necessary  for  some  students,  while 
others  will  require  more  details.  When  the  head- 
ings are  decided  upon,  it  is  desirable  that  all  sub- 
headings should  be  carefully  grouped  under  the 
main  headings  and  a  copy  of  this  kept  in  the  front 
of  the  distribution  book,  so  that  like  expendi- 
tures will  be  distributed  under  the  same  heading 
throughout  the  year. 


139 


CHAPTER  XV 
THE  TIME  BUDGET 

The  householder  who  cares  for  his  own  garden  or 
lawns  and  the  housewife  who  adds  to  the  possibili- 
ties of  the  income  by  doing  the  family  sewing, 
housework  or  laundry  are  adding  to  the  actual 
income  just  as  surely  as  if  they  did  work  outside 
for  which  they  were  paid.  The  children  who  share 
the  work  of  the  house  and  thus  reduce  the  amount 
of  paid  service  necessary  are  adding  to  the  value  of 
the  income.  The  money  expenditures  of  such  a 
family  may  easily  be  less  than  those  of  a  family 
where  all  this  work  is  accomplished  by  paid  service. 
This  fact  should  be  recognized,  the  value  of  such 
service  should  be  estimated  carefully  and  the  results 
used  in  any  comparisons  made,  with  a  view  to  de- 
termining whether  a  certain  expenditure  is  justified 
or  not. 

It  has  not  seemed  wise  to  include  the  money 
value  of  such  service  in  the  total  income  and  thus 
make  it  necessary  to  charge  it  off  in  the  operating 
expense,  or  cost  of  clothing  or  entertaining.  Such 

140 


THE  TIME  BUDGET 

a  procedure  would  only  complicate  the  bookkeep- 
ing and  make  it  more  of  a  bugbear  to  the  inexperi- 
enced. The  author,  however,  does  not  mean  to 
deprecate  the  value  of  such  work,  the  additional 
possibilities  which  it  offers  for  ease  in  the  use  of 
the  income  or  the  need  that  every  member  of  the 
family  should  recognize  the  fact  that  such  work 
does  add  to  the  real  income.  Where  there  is  a 
question  of  choice  as  to  work  outside  the  home 
which  will  bring  visible  addition  to  the  income, 
and  work  inside  the  home  which  seems  futile  be- 
cause the  return  is  less  tangible,  the  matter  should 
be  carefully  discussed,  and  a  balance  drawn  which 
shows  the  condition  exactly,  before  the  decision 
is  made. 

It  is  impossible  to  place  a  money  value  upon  the 
presence  of  the  mother  in  the  home  and  the  spirit 
of  the  service  which  she  gives,  and  it  is  difficult  to 
judge  of  the  real  value  of  outside  work  to  obtain 
additional  income  if  one  honestly  faces  the  fact 
that  such  work  means  partial  withdrawal  of  the  in- 
fluence of  the  mother  from  the  home  life. 

Because  of  the  money  value  which  may  be  placed 
upon  the  time  of  the  housewife,  it  is  especially  de- 
sirable that  the  time  devoted  to  planning,  sewing 
and  housework  should  be  carefully  budgeted,  and 
that  the  less  important  things  should  wait  for  the 

141 


SPENDING  THE  FAMILY  INCOME 

essentials;  comparisons  must  be  made  and  the 
real  value  of  each  kind  of  work  estimated.  If  this 
is  done,  mothers  will  spend  less  of  their  tune  on 
unnecessary  sewing,  ironing  and  elaborate  cooking 
and  devote  more  time  to  the  enjoyment  of  family 
recreation,  study  and  exercise. 

Where  there  are  children,  it  is  desirable  that  each 
should  be  given  a  part  in  the  work  and  care  of  the 
house.  No  matter  how  much  paid  service  is  avail- 
able, every  member  of  the  family  should  have  a 
share  in  making  the  home  a  comfortable  living 
place.  This  should  be  planned  so  that  it  is  evident 
that  the  failure  of  any  individual  to  perform  his 
share  of  the  work  reacts  directly  upon  the  comfort 
of  other  members  of  the  family.  Such  a  plan 
makes  for  unity  of  family  life  and  gives  the  chil- 
dren a  sense  of  citizenship  within  the  family  which 
will  later  tend  to  make  a  better,  more  responsible 
citizen  in  the  community,  while  selfish  dependence 
upon  either  one  or  both  of  the  parents  must  tend 
to  develop  a  feeling  that  the  world,  as  well  as  the 
home,  owes  him  a  living,  and  that  his  responsibility 
for  others  is  nil.  It  is  then  a  part  of  the  work  of 
the  housewife  to  plan  the  duties  for  the  rest  of  the 
family,  and  any  budget  of  her  own  time  must  rec- 
ognize the  fact  that  others  are  involved. 

When  work  has  to  be  done,  it  is  desirable  that 
142 


THE  TIME  BUDGET 

nothing  should  be  crowded  out  or  attended  to  hur- 
riedly because  forgotten  or  neglected  for  less  im- 
portant things.  Plan  the  tune  so  that  as  much  as 
possible  may  be  accomplished  and  leave  undone 
only  those  things  which  can  wait.  Divide  the 
time  in  such  a  way  as  to  allow  for  work,  rest  and 
play,  —  otherwise  the  quality  of  work  will  suffer. 
Failure  to  play  means  that  work  becomes  drudg- 
ery. Failure  to  rest  means  that  work  becomes 
forced  and  is  poor. 

To  Make  a  Time  Budget 

List  the  important  things  to  be  done,  with  the 
time  each  will  take. 
Arrange  in  order. 

Allow  time  enough  for  interruption,  but  not  time 
enough  to  work  lazily. 

If  not  interrupted,  time  will  be  gained.  Use 
this  for  less  important  work  which  it  had  seemed 
possible  might  be  obliged  to  wait  until  the  next  day. 
Plan  time  for  rest  and  play  and  use  it  as  planned. 
When,  as  often  happens,  a  worth-while  interrup- 
tion prevents,  make  up  for  it  later.  Make  the 
programme  of  work  flexible. 

A  daily  programme  should  include : 

A  list  of  routine  work  in  the  order  in  which  it 
is  to  be  done. 

143 


SPENDING  THE  FAMILY  INCOME 

Hours  for  special  work. 
A  weekly  programme  should: 

Allow  time  for  routine  work. 

Specify  special  work  for  each  day. 
A  season's  programme  should  include: 

Special  work  planned  by  weeks. 
In  each  programme  there  should  be  free  tune  for 
meals,  rest  and  play.  By  the  use  of  a  time  budget 
it  should  be  possible  to  cover  the  greatest  amount 
of  work  without  excessive  strain  or  fatigue;  to  give 
the  right  proportion  of  time  to  each  task;  the 
right  value  to  essentials;  to  eliminate  unnecessary 
details;  to  lead  a  better  balanced  life,  with  work, 
play  and  leisure  each  given  due  consideration.  A 
housekeeper  running  her  house  on  a  businesslike 
plan  should  provide  a  daily  and  weekly  programme 
for  her  maids  as  well  as  for  herself  and  members  of 
her  family.  A  monthly  or  season's  programme 
for  herself  will  serve  as  the  basis  of  changes  in  the 
other  plans.  It  is  desirable  that  the  people  who 
are  to  do  the  work  should  have  some  part  in  mak- 
ing the  plan,  and  cooperation  in  this  will  bring  far 
better  results  than  offering  an  arbitrary  programme 
and  insisting  upon  it,  without  regard  to  the  per- 
sonal preferences  of  the  worker. 


144 


THE  TIME  BUDGET 

Example  of  a  Time  Budget 
DAILY  — ROUTINE  WORK 

Put  living  rooms  in  order 

Prepare  and  serve  breakfast 

Kitchen  and  bedroom  work 

Special  work  of  the  day 

Prepare  and  serve  luncheon 

Clear  table,  leave  dining  room  in  order 

Wash  dishes,  leave  kitchen  in  order 

Rest 

Sewing,  marketing,  exercise  out  of  doors 

Prepare  and  serve  dinner 

Clear  dining  room  and  attend  to  dishes 

Time  allowed  for  each  process  depends  upon  indi- 
vidual 

Time  must  be  allowed  and  fitted  in  to  programme 
for  care  of  children  or  other  special  duties 

WEEKLY  — SPECIAL  WORK 

Monday          Attend  to  laundry  and  put  house  in  good 

general  order 
Tuesday         Wash  and  iron  special  pieces  not  sent  to 

laundry 
Wednesday     Clean  bedrooms.     Give  special  care  to 

bathroom 

Thursday        Clean  silver  and  put  pantry  in  order 
Friday  Clean  living  rooms  and  halls.     Weekly 

mending 

145 


SPENDING  THE  FAMILY  INCOME 

Saturday 


Sunday 


January 

February 

March 


April 
May 

June 
July 

August 
September 

October 

November 
December 


Preparation  for  Sunday  meals.  Count 
and  put  away  clean  clothes.  Special 
dusting 

Necessary  routine  work.  Rest.  Social 
life  with  family 

SEASONAL  OR]  MONTHLY 

Sewing,  replenishing  household  supplies 

Clean  book  shelves,  closets,  etc. 

Clothing  inspection  and  plans  for  sum- 
mer clothing.  Repair  and  refinish 
screens 

Sewing  for  summer.  Remove  storm 
windows  and  put  in  screens. 

Putting  away  winter  clothes.  Take  down 
furnace  pipes  and  clean  the  furnace 

Out  of  door  life.     Canning  and  sewing 

Plans  for  fall  and  winter  clothing.  Can- 
ning vegetables 

Put  furnace  in  order  for  the  winter 

Special  cleaning  of  rugs  and  paint.  Pack 
away  summer  clothing.  Air  closets, 
etc. 

Preparation  for  Christmas.    Put  on  storm 
windows  and  doors 
Christmas  preparation 


This  list  is  suggestive  only;  no  attempt  has  been 
made  to  make  it  model  or  even  entirely  complete, 

146 


THE  TIME  BUDGET 

as  no  two  housewives  would  be  able  to  follow  any 
one  budget  exactly.  A  similar  programme  may 
be  adapted  to  the  use  of  a  housekeeper,  working 
with  or  without  the  help  of  other  members  of  the 
family,  or  it  may  be  adjusted  to  the  needs  of  a 
housekeeper  with  one,  two  or  three  maids. 


147 


CHAPTER  XVI 
LISTS  AND  INVENTORIES 

The  housekeeper  or  individual  with  an  instinct 
for  business  form  will  naturally  fall  into  habits 
which  follow  somewhat  the  procedure  of  a  business 
office.  Lists,  inventories  and  card  catalogue  data 
will  accumulate  according  to  the  degree  of  business 
ability  or  "  feeling  for  system  "  which  is  her  portion. 

The  time  budget  of  our  grandmothers  included 
a  very  definite  apportionment  of  the  work  of  the 
home  among  the  members  of  the  family.  Each 
day  had  its  especial  work  and  each  season  its  list  of 
household  activities  assigned  to  it.  These  time 
budgets  were  seldom  written  out  but  were  no  less 
hard  and  fast  on  that  account.  The  time  budget 
of  the  present  day  includes  a  different  set  of  duties 
and  they  are  less  positively  assigned  to  the  day  or 
month,  but  the  housekeeper  who  is  businesslike 
has  her  list  and  endeavors  to  plan  her  time  to  ad- 
vantage. 

The  food  budget  is  more  important  now  than 
ever  before,  except  during  the  late  war.  It  is  be- 
coming more  and  more  necessary  to  spend  the 

148 


LISTS  AND  INVENTORIES 

money  available  for  food  to  the  best  advantage  in 
order  that  the  family  may  be  well  fed,  which  means 
that  they  should  have  an  adequate  amount  of  food 
of  satisfactory  quality,  so  chosen  as  to  provide  not 
only  sufficient  nourishment  but  enjoyment  and 
interest. 

The  supply  of  household  linen  should  be  replen- 
ished by  a  regular  and  definite  system.  If  small 
additions  are  made  each  year,  according  to  a  plan, 
there  will  be  no  season  of  dismay  when  suddenly 
every  tablecloth  is  frayed  and  every  sheet  is  worn 
thin.  Definitely  planned  additions  to  the  stock 
of  household  linen  will  prove  far  less  of  a  strain 
upon  the  income  than  the  hit-or-miss  buying  which 
is  frequently  dependent  upon  the  force  with  which 
one  feels  the  blow  when  the  hem  is  stripped  from 
one  of  the  last  good  sheets  in  the  supply. 

There  are  people  who  revel  in  lists  and  in  the 
home  of  such  a  person  one  may  find  inventories  of 
the  contents  of  the  various  closets,  packing  boxes 
and  trunks.  ^ hese  are  pasted  in  the  tops  of  the 
boxes  or  fastened  inside  the  closet  doors  and  prove 
of  value  in  tracing  articles  the  first  season  after  the 
lists  are  made;  but  when  objects  are  found  and 
removed  for  use,  the  lists  become  inaccurate.  The 
orderly  soul  of  such  a  housekeeper  dislikes  to  cross 
off  the  list  the  articles  removed;  "They  will  go  back 

149 


SPENDING  THE  FAMILY  INCOME 

there  when  their  time  of  service  is  over;  why  spoil 
the  fair  appearance  of  the  card?"  Some  add 
cryptic  marks  to  indicate  that  certain  articles  are 
temporarily  out  of  bondage  and  later  plan  to  add 
further  signs  to  indicate  their  return;  but  few 
housewives  carry  a  pencil  and  fewer  still  remember 
to  attach  one  to  the  storeroom  door  or  cover  of  the 
packing  case.  It  is  easy  to  think  that  memory 
will  serve,  —  and  suddenly  every  list  is  inaccurate, 
none  are  up  to  date,  and  once  more  the  weary  hunt 
is  on  for  last  summer's  underwear  or  last  winter's 
overshoes. 

Another  type  of  mind  finds  delight  in  a  card 
catalogue  of  all  the  family  possessions,  with  notes 
on  each  card  something  as  follows: 

Article 

Acquired  Cost 

Kept  in  Remarks 

This  is  a  most  satisfactory  system  if  kept  up  to 
date,  if  the  places  for  storing  are  never  changed 
without  a  like  change  on  the  card,  and  if  the  cards 
referring  to  articles  worn  out  or  given  away  are 
culled  from  the  box. 

Most  helpful  to  many  women  are  the  cards  which 
give  addresses  of  workmen,  household  assistants 
and  tradesmen,  —  in  fact,  all  sources  of  supply; 

150 


LISTS  AND  INVENTORIES 

other  cards  with  recipes,  short  cuts  in  housework, 
" hints  to  handy  housewives"  and  antidotes  for 
poisons.  I  have  always  hoped  I  would  have  my 
cards  under  my  arm  when  I  swallowed  a  corrosive 
sublimate  tablet  instead  of  aspirin.  There  are 
lists  of  common  poisons  and  their  antidotes  for  the 
medicine-closet  door;  lists  of  the  medicines  con- 
tained there  and  the  particular  reason  for  their 
presence;  lists  of  callers,  their  days  at  home,  the 
date  of  their  calls  and  the  dates  when  they  were 
returned;  lists  of  books  owned,  borrowed  and  to 
be  purchased;  lists  of  wedding  gifts,  —  these  do 
not  become  out  of  date  and  they  serve  several  use- 
ful purposes  beside  being  a  fruitful  source  of  rem- 
iniscence in  later  years.  A  card  catalogue  of  the 
favorite  dishes  of  guests  and  of  their  especial 
aversions  in  food  is  said  to  be  of  inestimable 
value  in  making  them  feel  well  cared  for  during 
future  visits;  menus  successfully  served  or  enjoy- 
ably  participated  in  with  suggestions  for  table 
decorations;  games  and  hints  for  especial  holiday 
celebrations,  —  all  assist  the  would-be  hostess  in 
solving  her  problems. 

Lists  of  gifts  made  and  received,  a  card  carried 
in  the  purse  giving  the  sizes  and  makes  of  under- 
wear, collars,  socks,  etc.,  worn  by  the  men  of  the 
family,  and  the  clothing  sizes  and  needs  of  the 

151 


SPENDING  THE  FAMILY  INCOME 

different  children  assist  the  shopper  and  often 
make  possible  the  purchase  of  a  real  bargain.  The 
financial  records  for  the  family,  names  and  other 
data  regarding  insurance  policies,  receipted  bills, 
lists  of  charge  accounts,  organization  dues,  taxable 
property,  investments,  records  of  the  storage  of 
furs,  the  cost  of  jewelry  or  especial  articles  of  cloth- 
ing and  house  furnishings  may  be  kept.  A  list  of 
tire  numbers  with  the  speedometer  reading  taken 
on  the  date  of  purchase  will  prove  of  value  hi  mak- 
ing tire  adjustments. 

Whether  or  not  one  is  inclined  to  keep  many  of 
these  lists  and  inventories,  there  is  one  which 
should  be  made  for  protection's  sake  and  kept  up 
to  date.  This  is  a  careful  inventory  of  furniture, 
bric-a-brac,  personal  belongings,  clothing,  etc., 
made  with  such  minutiae  of  description  and  in- 
formation as  to  cost  that  it  will  be  accepted  by  in- 
surance companies  in  case  of  fire  or  burglary.  At 
least  two  copies  of  this  inventory  should  be  in  ex- 
istence, one  kept  permanently  hi  a  safe  place  out- 
side the  house  and  the  other  to  be  in  the  custody 
of  the  caretaker  during  the  temporary  absence 
of  the  owner  of  the  property. 

The  housekeeper  who  is  fortunate  enough  to  have 
a  desk  which  may  be  devoted  entirely  to  the  busi- 
ness of  the  home  has  opportunity  for  the  use  of 

152 


LISTS  AND   INVENTORIES 

many  business  forms  which  are  impossible  for  the 
occupant  of  a  house  or  apartment  where  desk 
space  is  not  available.  Bill  files,  letter  files  and 
card  index  boxes,  record  books,  account  books, 
boxes  of  pens,  clips,  elastic  bands  and  metal  fasten- 
ers, postal  scales,  stationery  and  pencils,  gummed 
package  and  name  labels  are  among  the  conven- 
iences which  offer  temptation  to  the  woman  of  sys- 
tematic mind  whether  she  has  room  for  them  or 
not,  but  usually  only  those  who  are  trained  to  a 
sense  of  their  value  really  make  successful  use  of 
such  material. 

The  possibilities  of  the  card  catalogue  records 
are  great  but  there  is  danger  that  the  young  and 
enthusiastic  housekeeper  will  start  a  larger  num- 
ber of  such  records  than  she  is  likely  to  keep  with 
any  degree  of  accuracy.  It  is  wise  for  each  to  se- 
lect the  type  of  records  which  she  most  needs  and 
is  sure  of  putting  to  continued  use.  A  record 
which  is  not  up  to  date,  accurate  and  complete,  is 
worse  than  useless,  for  its  information  is  so  mis- 
leading that  its  use  will  be  likely  to  cause  far  more 
trouble  and  irritation  than  would  result  from  the 
lack  of  any  information!  at  all. 

With  proper  apologies  for  the  addition  of  one 
more  list  to  the  many  already  extant,  there  is 
here  given  a  number  of  lists  which  might  prove  use- 

153 


SPENDING  THE  FAMILY  INCOME 

ful.  One  must  judge  for  one's  self  which  would  be 
likely  to  be  of  value  in  a  particular  case  and  choose 
according  to  individual  needs. 

Inventory  ol  property 

Inventory  of  investments;  interest  dates 

List  of  insurance  policies  with  dates  when  pay- 
ments are  due 

Inventory  of  household  furniture 
Books  and  bric-a-brac 
Clothing  and  personal  belongings 

Card  Catalogue  Lists 

a.  Social  —  Gifts  given  and  received 

Guest  menus 

Table  decoration 

Holiday  celebrations 

Games 

Calling  lists 
Days  at  home 
Calls  made  and  received 

b.  Books  —  Owned,  loaned,  borrowed,  to  pur- 

chase, to  read  [ 
r.  Addresses  —  Friends 

Telephone  numbers 
Workmen 

Household  assistants 
Tradesmen 
154 


LISTS  AND  INVENTORIES 

d4  Supplies  —  Furniture 

Linen 

Blankets 

Contents  of   closets,    trunks  or 
packing  cases 

Poisons  and  antidotes 

Medicines 
e.  Food  and  Housework 

Menus 

Recipes 

Amounts  to  buy 

Price  lists 

Canned  goods,  special  brands 

Handy  Hints  to  Housewives 


155 


CHAPTER  XVII 
QUESTIONS  FOR  DISCUSSION 

Have  we  a  living,  a  comfort  or  a  luxury  income? 

Do  we  demand  more  luxuries  than  the  size  of  our 
income  warrants? 

Are  we  demanding  that  our  income  shall  provide 
living  conditons  according  to  our  former  standards, 
in  spite  of  increasing  costs? 

What  constitutes  wise  expenditure?  Have  we  a 
plan  for  spending,  or  are  we  drifting? 

Are  we  taking  into  account  the  money  value  of 
the  woman's  work  in  the  home,  or  are  we  consider- 
ing that  the  total  income  is  represented  by  the 
money  we  have  to  spend? 

Do  we  know  just  what  caused  deficits  last  year? 

Do  we  know  from  last  year's  records  what  ex- 
penditures might  have  been  curtailed  in  order  to 
meet  these  deficits  without  affecting  our  stand- 
ards, our  health  our  happiness? 

Is  it  possible  to  adopt  a  simple  system  which  will 
prevent  unwise  expenditures  and  give  a  good  basis 
for  planning,  so  thai  we  may  either  save  money, 
release  money  for  better  uses  or  purchase  things 

156 


QUESTIONS  FOR  DISCUSSION 

which  are  of  greater  value  in  themselves  and  give 
us  greater  satisfaction? 

Shall  the  bills  be  paid  from  a  joint  checking  ac- 
count, or  from  an  account  held  by  the  person  di- 
recting household  expenditures? 

Shall  we  establish  credit  with  a  few  reliable 
firms,  or  pay  cash? 

Shall  the  division  of  the  family  income  be  de- 
termined by  the  individual,  by  conference  of  hus- 
band and  wife  or  by  family  council? 

Standards  for  Saving 

Have  we  definitely  planned  our  saving  so  as 
to  insure  a  known  return,  or  are  we  saving  care- 
lessly? 

Have  we  planned  our  savings  in  a  way  which  will 
insure  our  independence  in  later  years? 

Are  we  saving  all  that  we  can  without  sacrific- 
ing health  and  efficiency? 

Do  we  plan  for  our  needs  and  count  our  saving 
as  a  need? 

Do  we  save  (according  to  our  plan)  before  we 
spend  for  our  other  needs? 

Are  we  spending  for  well  being  and  saving  before 
we  spend  for  luxuries? 

Do  we  remember  that  if  we  earn  a  little,  spend 
less  and  save  the  difference,  we  will  thus  build  up  a 

157 


SPENDING  THE  FAMILY  INCOME 

fund  which  will  serve  as  a  basis  for  income  in  old 
age,  for  protection  in  an  emergency  and,  if  safely 
invested,  will  be  a  contribution  toward  the  develop- 
ment of  industry,  thus  making  us  a  partner  in  the 
resources  of  the  community? 

Do  we  consider  our  savings  from  three  points  of 
view: 

Emergency  —  have  a  savings-bank  account; 
Protection  —  carry   straight   life   insurance; 
follow  a  carefully  made  plan   of   invest- 
ments. 

Education  of  children  or  home  building  — 
buy  endowment  insurance  or  shares  in  a 
cooperative  bank. 

Do  we  know  what  form  of  saving  will  best  meet 
our  need? 

Do  we  know  the  real  cost  of  our  life  insurance 
and  the  return  in  interest? 

Do  we  realize  that  it  is  important  not  only  to 
save,  but  to  decide  how  much  and  how,  and  the 
wisest  way  to  invest  our  savings,  and  then  to  fol- 
low our  plans  systematically? 

Standards  for  Shelter 

What  conditions  in  shelter  are  necessary  to  safe- 
guard the  health  and  comfort  of  our  family? 
Have  we  children,  old  people  or  invalids  in  the 
158 


QUESTIONS  FOR  DISCUSSION 

family  to  be  considered  when  we  choose  our  shel- 
ter? 
What  must  we  demand  in: 

a.  Location?    City,  country,  town,    suburbs? 

b.  In  type  and  size  of  house?    House  or  apart- 
ment?   Large  or  small  rooms?    Number  of  liv- 
ing rooms?    Number  of  sleeping  rooms?  Number 
of  bathrooms?    Size  and  condition  of  kitchen, 
pantries,  storeroom,  cellar?    Kind  of  sanitation, 
drainage  and  water  supply?    Safe  construction  or 
elaborate  finish?  Sunshine,  light,  space?  Grounds, 
backyard? 

c.  In  type  of  neighbors? 

d.  In  possibilities  of  education  and  social  life? 
—  Schools,  churches,  community? 

In  choosing  our  shelter 
Have  we  considered  the  children  our  children 

must  play  with? 
The  social  conditions  our  children  must  be  a 

part  of? 

Are  we  paying  more  carfare  than  we  should 
afford? 

Do  we  keep  in  mind  the  fact  that  the  cost  of 
shelter  includes  not  only  rent  but  carfares  to  busi- 
ness and  schools? 

When  we  selected  our  shelter,  did  we  consider 
the  cost  of  operating  the  house  before  we  made  our 

159 


SPENDING  THE  FAMILY  INCOME 

decision?  The  cost  of  heating  or  lighting  one 
house  may  be  much  more  than  the  cost  for  another 
of  equal  size  and  rent,  but  less  well  planned  and 
built. 

Do  we  know  why  we  hire  instead  of  owning  our 
own  home? 

Standards  for  Food 

Do  we  spend  our  food  money  for  return  in 
nourishment  and  health,  or  for  satisfaction  of  appe- 
tite? 

Do  we  judge  the  worth  of  food  by  its  cost,  by  its 
use  in  the  body  or  by  its  flavor? 

Are  our  food  standards  higher  than  our  income 
warrants? 

Are  our  meals  too  elaborate  with  too  many 
courses,  too  much  meat,  too  many  rich  desserts, 
too  expensive  and  out  of  season  foods? 

Have  we  simplified  buying,  cooking  and  service 
as  much  as  possible,  without  sacrificing  the  health 
and  comfort  of  our  family? 

Do  we  consider  milk  as  the  basis  upon  which  we 
should  plan  our  meals,  or  do  we  count  meat  as  the 
central  food?  Do  we  use  enough  milk? 

What  can  we  omit  from  our  diet  in  order  to  pur- 
chase the  amount  of  milk  and  fruit  and  leafy  vege- 
tables which  it  is  desirable  for  our  family  to  eat? 

160 


QUESTIONS  FOR  DISCUSSION 

Standards  for  Operating 

Have  we  analyzed  our  housekeeping  expen- 
ses? Do  we  know  whether  we  are  spending 
minimum  or  maximum  amounts  for  operating? 

Are  we  adding  to  our  housekeeping  or  operating 
expenses  by  living  in  a  fashion  more  formal  and 
with  more  expensive  details  than  is  consistent  with 
the  kind  of  house  and  the  quality  of  food  and 
clothing  which  we  are  able  to  provide? 

If  so,  is  this  done  on  account  of  the  health  of 
some  member  of  the  family,  or  because  we  fancy 
that  business  reasons  make  it  necessary,  or  have 
we  drifted  into  a  careless  attitude  toward  operating 
expenses? 
What  are  our  standards 

For  Service  —  regular  service,  " outside  help," 

laundry  done? 
For  Heat  —  hot  water,  hot  air,  steam  or  stove 

heat? 

For  Light  —  electric,  gas  or  oil  light? 
Do  we  waste  water  through  neglect  of  dripping 
or  leaking  faucets  or  by  careless  use  of  running 
water? 

Are  we  careful  to  use  lights  only  when  we  need 
them? 


161 


SPENDING  THE  FAMILY  INCOME 

Are  we  particular  not  to  use  electric  bulbs  with 
more  wattage  than  is  necessary? 

Are  we  careless  with  our  gas  for  cooking? 

Do  we  control  our  fires  so  as  to  conserve  the  coal, 
or  are  we  careless  with  the  dampers? 

Do  we  know  what  size  of  coal  is  best  adapted  to 
our  stove  or  furnace? 

Do  we  coal  our  range  with  a  shovel  or  pour  the 
coal  from  the  hod? 

Do  we  keep  our  fires  at  the  top  of  the  lining  or 
waste  coal  by  filling  the  fire-box  too  full? 

Do  we  clear  the  ashes  from  under  the  grate? 

Do  we  keep  the  flues  clean? 

Do  we  clean  the  heating  surfaces  from  soot? 

Do  we  know  what  our  laundry  costs  are  for 
labor,  food,  utensils,  material,  wear  and  tear? 

Could  we  reduce  the  laundry  by  care  in  use  of 
towels  and  bedding  and  unironed  sheets?  By  the 
use  of  untrimmed,  seersucker  or  knit  underwear? 
By  economy  hi  the  use  of  table  linens  —  the  use 
of  doilies  and  runners  in  place  of  tablecloths? 

Do  we  have  unnecessary  telephone  service? 

Standards  for  Clothing 

Do  we  make  our  purchases  for  the  family  ac- 
cording to  a  definite  plan,  after  study  of  our  in- 
come; do  we  decide  the  amont  of  money  it  is  right 

162 


QUESTIONS  FOR  DISCUSSIONS 

for  us  to  spend  and  the  especial  needs  of  each  mem- 
ber? 

Do  we  think  of  suitability,  serviceability  and 
cost,  before  buying  for  the  family? 

What  kind  of  underclothing  shall  we  provide, 
—  knitted,  seersucker  or  muslin?  Trimmed  or 
plain?  Economical  or  luxurious?  Light  weight 
or  heavy?  Does  our  underwear  allow  freedom  of 
motion? 

Do  we  know  something  of  the  durability,  fast- 
ness of  color,  effects  of  laundering,  amount  of  siz- 
ing and  shrinkage  of  materials  before  we  buy? 

Do  we  consider  all  the  social  functions  for  which 
clothing  must  be  used,  or  do  we  buy  for  one  occa- 
sion which  is  not  likely  to  be  repeated? 

What  are  rational  requirements  in  the  style  of  a 
suit,  dress  or  evening  gown?  Does  our  clothing 
meet  these  requirements? 

Making.  What  is  the  best  plan  for  us?  To  buy 
ready-made  garments  or  to  make  at  home  all  or  a 
part  of  them;  machine  or  hand  sewing;  new  gar- 
ments or  remodeled?  Dressmaking  at  home  or 
outside? 

Home  care.  What  kind  of  laundry  work  is  pos- 
sible for  us?  Do  we  buy  our  clothing  with  that  in 
mind? 

Do  we  prolong  the  life  of  the  clothing  by  dry 
163 


SPENDING  THE  FAMILY  INCOME 

cleaning,  dyeing,  retinting  with  soap,  careful  darn- 
ing and  mending,  removal  of  spots  and  stains? 

Do  we  have  clothing  washed  or  cleansed  at  once, 
or  let  it  hang  with  dirt  and  dust  on  it? 

Do  we  pack  garments  away  carefully,  or  leave 
them  to  hang  during  long  periods  of  time  when 
they  are  not  to  be  worn? 

Standards  for  Development 

What  are  our  standards  for  our  children  and  for 
adults  in  the  family  in  Health?  Travel?  Recrea- 
tion? Philanthropy?  Education?  Culture?  Social 
Life?  Vacation?  Gifts? 

Are  we  allowing  our  money  for  development  to 
be  frittered  away  for  small  purchases  which  are  of 
transient  worth,  or  are  we  spending  our  margin  for 
those  things  which  will  remain  of  value  in  the  home 
or  in  the  mind? 

Is  our  family  life  well-balanced,  with  oppor- 
tunity for  work,  sleep,  play  and  culture? 

If  we  believe  the  church  is  a  desirable  institution 
in  our  community  and  wish  it  to  continue  there, 
have  we  a  duty  toward  its  support? 

Do  we  plan  for  service  to  others,  through  philan- 
thropy and  social  intercourse,  or  by  sharing  time, 
money  or  strength  with  those  in  need? 

Do  we  keep  our  social  life  on  the  right  plane  at  a 
164 


QUESTIONS  FOR  DISCUSSION 

cost  which  is  consistent  with  other  expendi- 
tures? 

Are  we  growing  by  accumulation  of  things  or  of 
ideas? 

Are  we  spending  more  for  luxuries  than  we  are 
saving? 

Are  we  buying  luxuries  on  the  installment  plan, 
or  using  our  savings  to  purchase  or  support  luxuries? 

Do  we  remember  that  luxuries  should  be  pur- 
chased from  current  income  or  from  a  special  fund 
saved  for  the  purpose  but  never  from  regular  sav- 
ings? 

Are  we  procuring  from  our  income  a  reasonable 
amount  of  health,  happiness  and  comfort? 

Are  we  buying  ability  to  work  happily? 

Is  our  home  producing  efficient  citizens? 

Money  Standards  for  Children 

Are  we  giving  our  children  a  regular  income  in 
order  to  teach  them  the  possibilities  of  saving,  the 
limitation  of  money,  the  responsibility  of  spending 
and  the  joy  of  giving? 

Are  we  teaching  our  children  how  to  spend 
wisely,  or  are  we  allowing  them  to  develop  care- 
less habits  in  spending? 

Are  we  giving  them  responsibility  in  regard  to 
the  spending  of  money  and  holding  them  to  it? 

165 


SPENDING  THE  FAMILY  INCOME 

Are  we  ready  with  advice  and  help  in  regard  to 
spending,  showing  an  interest  in  the  children's  suc- 
cessful use  of  their  money,  or  do  we  merely  scold 
them  for  their  failures? 

Do  we  give  our  children  complete  freedom  in  the 
final  decision  in  spending,  allowing  them  an  oppor- 
tunity to  learn  by  experience  that  foolish  spending 
brings  its  own  punishment? 

Do  we  encourage  the  saving  of  small  sums  with 
some  regularity?  Do  we  put  a  premium  on  judi- 
cious use  of  money  and  a  penalty  on  careless  use? 
If  we  have  a  system  of  fines  for  habits  of  careless- 
ness, wastefulness  and  untidiness,  have  we  also 
a  system  of  rewards  for  corresponding  virtues? 

Are  we  teaching  our  children  that  saving  small 
sums  will  develop  greater  purchasing  power,  or  do 
we  allow  them  to  believe  that  only  older  people 
have  a  duty  toward  saving? 

Are  we  teaching  them  to  measure  the  real  value 
of  an  expenditure  before  they  make  it? 

Do  our  children  realize  that  the  cost  of  family 
life  is  increased  by  each  additional  member  of  the 
family;  that  each  individual  has  a  duty  toward  the 
family  income;  that  each  individual  has  a  duty 
toward  community  interests  and  should  make  his 
own  contribution  toward  their  support? 

Do  we  consider  that  each  member  of  the  family 
166 


QUESTIONS  FOR  DISCUSSION 

should  realize  the  cost  of  his  living  and  contribute 
toward  it,  either  by  wise  planning,  by  service,  by 
wise  use  of  materials  or  by  saving? 

Do  we  realize  that  the  best  time  to  learn  how  to 
plan,  to  buy  and  to  use  is  while  the  child  is  in  the 
care  of  the  family,  when  mistakes  will  not  be  se- 
rious? 

Do  we  teach  our  children  that  they  should  spend 
not  to  gratify  whims,  but  in  accordance  with  a  plan 
which  provides 

For  saving.      For  needs.      For  giving. 
For  play.  For  growth. 


167 


SPENDING  THE  FAMILY  INCOME 


BIBLIOGRAPHY 

"The  Cost  of  Shelter."    Mrs.  Ellen  H.  Richards.     Macmillan 
Company. 

"The  Cost  of  Food."     Mrs.  Ellen  H.  Richards.     Macmillan 
Company. 

"The  Cost  of  Living."    Mrs.  Ellen  H.  Richards.     Macmillan 
Company. 

"The  Business  of  the  Household."    C.  W.  Taber.    J.  B.  Lip- 
pincott  Company's  Series. 

"The  Modern  Household."    Talbot  and  Breckenridge. 

"The  Woman  Who  Spends."    Bertha  J.  Richardson.    Whit- 
comb  and  Barrows  (Boston). 

"Putting  the  Home  on  a  Business  Basis."    Edythe  P.  Hershey. 
University  of  Texas.    Published  by  University  of  Texas. 

"A  Manual  of  Home  Making."    Van  Rensselaer,"_Rose  and 
Cannon.    Macmillan  Company. 

"Household    Engineering."     Christine    Frederick.     American 
School  of  Home  Economics. 

"Standards  of  Living."     Bureau  of  Applied  Economics. 

U.  S.  Treasury  and  Agricultural  Department  Thrift  Bulletins. 

Monthly  Labor  Reviews.    U.  S.  Department  of  Labor. 

"The  American  Business  Woman."     John  Howard  Cromwell. 
S.  P.  Putnam's  Sons. 

"Household    Management."    Bertha    M.    Terrill.    American 
School  of  Home  Economics. 

"The  Household  Budget."    John  P.  Leeds.     Published  by  W. 
R.  Lane. 

"Money  —  What  it  is  and  How  to  use  It."    William  R.  Hay- 
ward.    Houghton  Mifflin  Company. 

"Cornell  University  Reading  Course."     "Thrift  Series." 

"Building  an  Income."    C.  L.  Stewart.    University  of  Arkan- 
sas Bulletin,  Vol.  13,  No.  15. 

* 'Marketing  and  Housework  Manual."    S.  A.  Donham.    Little, 
Brown,  and  Company. 


168 


INDEX 


INDEX 


ABUNDANT  LIFE,  11,  29 
Accounting,  Household,  88 

Personal,  91 
Accounts,  Checking,  89,  157 

Children's,  97 

Headings  for,  95 

Individual,  81,  96,  114 

Joint,  5-7 

Summary  of,  98 
Allowance,     Children's,     123, 
129-131 

Household,  7 

Personal,  115 
Analysis  of  Standards,  16 
Apartment,  31,  32,  63,  109 

BANK,  COOPERATIVE,    27,  28, 
158 

Savings,  26,  27,  28,  158 
Bank  Account,  5 
Boarding,  109,  112 
Budget,  Definition  of,  8 

Food,  45 

Household,  8 

How  to  make  a,  83 

Ideal,  viii 

Income,  8 

Individual,  109,  115 

Reasons  for,  10 

Revision  of,  9 

Time,  143 


Budget  Charts,  87 
Building,  158 
Business  Forms,  148,  153 
Business  Man,  11 
Business  Principles,  125 

CALORIES,  46 
Card  Catalogue,  150,  153 
Cash,  Petty,  89,  90 
Children's  Allowance,  123,  129, 

131 

Children's  Foods,  142 
Choice  of  Expenditures,  13,  69 
Circles,  Graphic,  Family,  101, 
104,  107 

Individual,  117 

Students',  133 
Citizen,  Duties  of  a  good,  19, 

142 
Clothing,  Care  of,  50 

Choice  of,  48 

Cost  of,  48,  80 

Individual,  112 

Purchasing,  53,  54 

Quality  of,  48 

Quantity  of,  47 

Standards  for,  50,  64 

Suitable,  77 

Clothing  Budget,  47,  51 
Clothing  Charts,  56-60 
Comfort  Income,  14,  23,  156 


171 


INDEX 


Community  Dining  Room,  39 
Community  Interests,  166 
Cooperation,  2,  9,  83 
Credit,  157 

DEFICIT,  156 

Desires  Gratified,  vi 

Development,  70,  80,  82,  118 
Questions    for     Discussion, 
164 

Development    for    the    Indi- 
vidual 113,  115,  118 

Dining  Room,  Community,  39 

Distribution  Chart,  87 

ECONOMICS,  Food,  39 
Education,  27,  124,  158 
Efficiency,  20,  69,  83 
Efficient  Life,  12 

Work,  6 

Electricity,  Cost  of,  61 
Emergency,  23,  26,  124,  158 
Engel's  Laws,  75 
Equipment,  18,  66 

Personal,  134 

Professional,  97,  114 
Estate,  23,  24,  26 
Existence  Income,  14 
Expenditure,  Balanced,  100 
Expenditure  Planned,  12,  114, 

133 
Experience,  121 

FAMILY,  BUDGET,  83,  148 

Conference,  i,  6, 157 

Finance,  120 
Financial  Responsibility,  6 


Food,  Adequate,  77,  79, 82,  111 

Choice  of,  39 

Cost  for  individuals,  111 

Cost  of,  40,  42 

Minimum  Allowance  for,  43, 
79 

Values  of,  41 
Food  Budget,  45,  148 
Food  Economics,  39 
Furniture  Inventory,  152 

GIVING,  70,  131,  164,  165 
Graphic   Circle,  Family,   101, 
104,  107 

Individual,  117 

Students',  133 

HEALTH,  32, 44, 82, 103, 156, 161 
Heat  and  Light,  99,  161 
Heating,  61 
Home,  Saving  to  Purchase,  18, 

27 

Home  Cooking,  42 
Home  Ownership,  32 

IDEALS,  68 

Income,  Additions  to,  4,  140 

Comfort,  14 

Continuous,  29 

Existence,  14 

Family,  120 

Increase  in,  31 

Living,  14 

Luxury,  14 

Material,  4 

What  Constitutes,  3-4 
Income  Money,  4 


172 


INDEX 


Income  Taxes,  76,  101 


MARGIN,  69,  79,  83 


Industry,      Development     of,      Materials,  List  of,  50 


19 

Individual,    Budget  for,    109, 
115,  119 

Clothing  for,  112 

Development  of,  112,  114 

Food  for,  110,  111 

Operating  for,  109 

Saving  for,  109 

Shelter  for,  110 
Individual   Accounting,     114, 

119 

Individual  Boarding,  109,  111 
Individual   Living   at   Home, 

112,  113 

Insurance,  Endowment,  27,  28, 
158 

Life,  28,  158 
Insurance  Statistics,  22 
Interest  Tables,  25 
Inventory,  2,  149,  152 
Investment,  Plan  of,  28,  158 

Safe,  26 

LAUNDRY,  64,  162,  163 

Leaks,  65 

Liabilities,  2,  93 

Life,  Well-rounded,  11,  12,  68, 

70 

Lighting,  62 
Linen  Supply,  149 
Lists,  149,  154 
Living  Income,  14,  156 
Luxury,  21,  29,  71,  72,  73,  156, 

165 
Luxury  Income,  14,  156 


Maximum  Comfort,  23 
Meals,  Planning  of,  45 
Minimum,  Amount  of  money, 

82 

for  Safety,  23 
Money  Value,  of  Housewife's 

Work,  140,  156 
of   Children's   Work,  142 

NECESSITIES,  v  ,  68,  70 

OPERATING,  INDIVIDUAL,   110, 

113 

Necessary,  60,  78 
Questions  about,  161 
Standards  of,  60,  161 

Operating  Percentage,  65 

PARENT'S  EXCUSES,  125 

Partners,  7 

Percentages,    Mrs.  Richards', 

74 

Saving,  20,  74 

Percentages  for  Operating,  65 
Petty  Cash,  89,  90 
Planned  Spending,  13,  14,  133, 

156 

Plan  of  Life,  13 
Property,  1,  32,  34,  35 

RECORDS,  88 

Responsibility,  Children's,  121, 
130 

Mutual,  5,  7,  120,  121,  165 

Parents',  126 


173 


INDEX 


Rules  for  Children's  Finances, 
129 

SATISFACTION,  DURABLE,  v 
Saving,  a  Civic  Duty,  19,  166 

by  Plan,  23,  157 

Constructive,  26,  29 

How  much,  26 

Percentages,  20,  74 

Students,  132 
Securities,  19 
Shelter,  Choice  of,  31,  35,  159 

Cost  of,  34,  36 

Essentials  of,  34 

Questions  for  discussion,  158 

Reasons  for  low  rental  of,  34 

Safe,  77,  79 

Standards  for,  36 
Sinking  Fund,  35,  92 


Spending  by  Plan,  13,  14,  133, 

156 

Standards  of  Living,  16 
Student  Account  Sheet,  137 
Graphic  Circle,  133 
Headings  for  Account  Sheet, 

134 
Systematic  Spending,  v 

TAXES,  INCOME,  76,  101 

Telephone,  162 

Time  Budget,  143,  148 

WELL  BEING,  21,  157 
Wise  Planning,  167 
Wise  Spending,  156 
Woman's  Work  in  the  Home, 
141, 156 


174 


THIS  BOOK  IS  DUE  ON  THE  LAST  DATE 
STAMPED  BELOW 

AN  INITIAL  FINE  OF  25  CENTS 

WILL  BE  ASSESSED  FOR  FAILURE  TO  RETURN 
THIS  BOOK  ON  THE  DATE  DUE.  THE  PENALTY 
WILL  INCREASE  TO  SO  CENTS  ON  THE  FOURTH 
DAY  AND  TO  $1.OO  ON  THE  SEVENTH  DAY 
OVERDUE. 


1938 
FE6  7  1939 


APR  3 


riNTER-LlBRART 

LOAN 

JAN  12  1979 

MAY   15  104/1     iLfttflR.    FCBnU*^ 

HBBC.CIR.Mflf    58^     / 

19  1946 

W4Y  6  1BU 

1 

* 

1 

UNIVERSITY  OF  CALIFORNIA  LIBRARY 


